Why South Africans are buying used cars

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A car needs to serve your needs for the next few years at least when you buy it - so it's important to make sure you get one that is the right fit for you and that won't let you down any time soon.

Buying a used car isn't necessarily the first thought that pops into most people's minds when thinking about a reliable option to purchase, but more and more South Africans are buying used cars every day, and we have some of the top reasons why you should consider it too

• The most obvious reason to buy a used car, and the cherry on the cake if you find a good deal, is that you can save money.

  You will save not only on the purchase which will undoubtedly be a lot lower than the price of a new car, but also on insurance costs and registration fees. Insurance is based on the car's value, so it is likely to be a significantly lower premium for a used car compared to that for a brand new car. Registration fees are based on the transaction price of the car, meaning that the lower cost of a used car works to your advantage here as well.

• You can easily get a better car than expected at the price you are willing to pay. The brand new, latest version of the car you have your eye on could easily cost a few thousand extra compared to last year's model for example. It is also likely that you can get a car with more luxuries and bells and whistles for a much cheaper price (think sunroof, electric mirrors, and perhaps even seat warmers at the fraction of the cost).

• The depreciation on a used car is a lot more attractive than a brand new car straight from the showroom. The second you drive a new car off the showroom, it can already lose up to 20% of its value!

  This seems excessive, but even worse than that is the fact that many new cars can lose a total of between 30-40% of its value in only the first year of ownership. That means that the resale value of a new car drops significantly, and it is very unlikely that you will be able to sell your car for a good price compared to what you initially paid for it.

  With used cars, however, depreciation stays at a sort of consistent level from the second to fifth year of ownership, so they could easily be resold for a similar price to what you bought it for second-hand.

• A certain level of peace of mind is something that tends to come quite naturally when buying a certified used car. This peace of mind comes in the form of not having to worry too much about the first pothole you might hit, or the first little ding your door might get in the parking lot.

  The car has probably already been through a few minor obstacles, and you don't have that extra pressure of waiting for that first scratch on the paint job of your brand new car that already lost 20% of its value as you left the showroom.

• Used cars offer a lot more in terms of variety. Whether you like an old school convertible, or last year's Jeep, there are a ton of options to choose from out there! There are different makes, models, colours, and definitely very many different features and luxuries out there to choose from. Doing some good research will mean you could likely find a bargain with all the little details you are looking for at a very reasonable price!

• Technology has improved over the years, and cars these days are more efficient than those in years before. If you buy a recent model used car, it is very likely to still serve you well for a good number of years to come.

All of these make quite a convincing case for the humble used car. The price is better, the options are better, and it may well give you more peace of mind in the long run.

Sources:
Bank Rate
Cheat Sheet
Auto Trader