As a young, professional adult you have many financial decisions to make. You will have to decide on what apartment to rent to suit your needs, what medical aid scheme to choose to best match your expectations and, of course, what car to buy.
You might be tempted by the sheer volume of cars for sale at dealerships, but rather than choosing a flashy new model, you should opt for a used car from dealers or car auctions online at this stage of your life. Not convinced that a used car will fit the bill? Below are just some of the reasons why you should choose a used car as a young adult.
One of the major reasons to shop on car auctions online or at used car dealerships is that used cars have less depreciation than new cars. As soon as you drive a new car out of the car lot, it starts to depreciate in value, meaning that you have lost out on the money you spent on your new car.
Buying a used car allows you to save money without having to sacrifice on quality, and you will find that the features on a three to four year old car will be very similar to those in a modern, new car. You will save yourself from seeing immediate depreciation by choosing a used car and you will have a more diverse selection of used cars than you will of new cars.
As mentioned above, car auctions online and used car dealerships have a wider variety to choose from than those that offer new cars. You might be looking for a specific make and model of car, which can be difficult to track down if you opt to buy a new car.
You also will not be limited to choosing a model that is two to three years old, but can choose something older. Perhaps something you have been looking for, for a long time. A vintage car is not out of the question, but you might have to look for specialist car auctions in Cape Town or other provinces to find one. With a new car, you will be limited to what is available at the dealership, which can be restrictive to your budget.
Young adults are seen as “higher risk” than older adults when it comes to insurance. But an older car is seen as having less “value” in the eyes of an insurer, which means that your insurance premiums should cost less. This makes choosing a used car a smart and cost-effective option.
You can calculate your entire cost to buy a used car by using a car value calculator, which will often factor in monthly insurance premiums. With a new car, you will have to take into account other costs, such as collision, theft and even third-party finance. But with a used car, you could even waive some of these insurance options. However, always be sure to ask your dealer or financial provider about what insurance you need for a used car in order for your finance to be approved.
New cars are often not able to be customised, or have very expensive options when it comes to changing rims, mags or any other aspects. When it comes to used cars, you will find it is much easier to customise them as the parts are cheaper and panel beaters find them easier to work with.
Many new cars have fancy electronics in them, which is fantastic if you enjoy crisp sound and all the technological advancement, but if you want to make a car your own, then these electronics can be restrictive. If you buy a used car that is five years old, you will find it easier to customise as it is not as up-to-date as a newer model. You can truly “pimp your ride” with whatever you choose if you opt for a used car over a new one.
Thanks to the low repayments, leasing has become increasingly popular with new car “buyers”, and these leases often carry restrictions related to mileage, vehicle maintenance, and condition. The restrictions mean that people need to take good care of their cars, which is great news for potential owners of these cars.
Once the lease term is up, the car is returned to the dealership and will need to find a new home. This home starts on the floor of the CPO section of the dealership lot. You will find that many of the cars in this section have low mileage, are well cared-for and have a sound maintenance history. This all makes for a high-quality but affordable used car, and you can find many CPO options available on car auctions online. These programmes allow young adults to find the cars of their dreams at a price they can truly afford.
