Benefits of Buying Secondhand Car
Benefits of Buying Secondhand Car:
When considering a big purchase such as a car, it can be tempting to keep your options limited to new models. But with the rising prices of brand new cars in the Philippines, secondhand car dealers are predicting an increase in demand for used cars.
If you’re currently in the market for a car, we’ve rounded up a few benefits of buying secondhand car to help you make a decision!
The more affordable prices of used cars is the most obvious benefit of buying secondhand. These cheaper alternatives not only reduce the amount of money you have to shell out, but also give you a better chance of being able to pay in cash or make a larger down payment!
To get an idea of the comparison in rates, here are five of the top car models in the country and their respective new and secondhand prices:
- Toyota Wigo
- Brand new: PHP 568,000 – PHP 700,000
- Secondhand: PHP 310,000 – PHP 580,000
- Toyota Vios
- Brand new: PHP 681,000 – PHP 1,035,000
- Secondhand: PHP 328,000 – PHP 791,000
- Honda City
- Brand new: PHP 848,000 – PHP 1,058,000
- Secondhand: PHP 220,000 – PHP 748,000
- Mitsubishi Xpander
- Brand new: PHP 1,008,000 – PHP 1,175,000
- Secondhand: PHP 635,000 – PHP 950,000
- Ford Ranger
- Brand new: PHP 1,155,000 – PHP 1,728,000
- Secondhand: PHP 370,000 – PHP 1,258,000
Faster loan pay-off
Loans for secondhand cars are generally shorter than those given for new ones. Buying used will allow you to pay off your loans sooner!
Wider range of options
Even though new car models are released every year, the market of brand new cars still offers significantly less options than used cars. Choosing to buy secondhand opens up a larger spectrum of options, including older and classic models.
Less vehicle depreciation
Vehicle depreciation is an inevitable part of driving. A brand new car loses up to 30% of its initial value during the first year of ownership. Meanwhile, a secondhand one offers much less depreciation.
This is because used vehicles have already undergone their major depreciation. So by the time you get behind the wheel, the car’s rate of depreciation has significantly slowed down, giving you a more stable loan-to-value ratio!
More reviews and information
Like with any big purchase, it’s best to do your research! Buying cars that have long been around gives you the advantage of prior knowledge, with information readily available from YouTube reviews to Facebook pages for car owners.
Secondhand car-buyers can even look into a car’s history before purchasing. Beyond the general information about a car, a car’s VIN (vehicle identification number) also includes mileage, accident history, and if it has ever declared a huge insurance loss.
There used to be a stigma surrounding driving used cars, with many drivers seeing it as a risk. But given their short-term and long-term benefits, it might be a good idea to explore the market of secondhand cars, especially as inflation rates continue to rise!