After a sleepy and calm winter when summer arrives, Irish people again start to explore the beautiful corners of the country by organizing many road trips. Thirst of adventure to discover the natural beauty of the regions completely mesmerize our eyesight. For this reason, instead of hiring public transport, many travellers like to go through the personal car.
But when you plan a road trip with more than 10 friends or with all your family members, gradually you will need a caravan or a ten-seater car. Therefore, your small car will not fit the road trip. So, planning the trip with all your family members may want to hire a second-hand car.
On the other hand, people who can’t afford the cost of a new car usually think about hiring second-hand vehicles to save time during travelling on public transport. Moreover, it is also safe to travel by personal cars instead of public transportation after the post-pandemic situation. Therefore, there are ample of other reasons, for which people used car finance for buying a second-hand car in Ireland.
5 good reasons to purchase second-hand car
- There is no burden of car insurance
After purchasing a new car, you need to contact a car insurance company to ensure the life of the vehicle and the life of passengers. Therefore, apart from the expense of purchasing the car, you need to carry out another additional expenditure. This is an extra burden for a person, becoming a leading cause of the financial crisis.
On the other hand, whenever a person has bought a second-hand car, he needs not to take over the extra burden of insurance costs. In most of cases, the car seller used to offer car insurance along with the vehicle.
- Get offers during the loan
To encourage people to buy a second-hand car, many finance companies reduce the interest rate on car loans. Therefore, many people who have never thought of buying a second-hand car used to apply for a car loan while purchasing an old car.
- Ease of remodelling
When a person purchases a new car, it becomes challenging to remodel it because it will cost high if you wish to remodel it. Besides, it will be a waste of money if you change the engine of a new car with another one. However, when you remodel a second-hand car, there is no doubt that it will be a worthy decision. This is because a used car needs some necessary remodeling, and then you can quickly bring it back to its previous state.
- Get your dream car
Perhaps, you have checked the price of your dream car and become depressed because you think that even if you apply for car finance, still it is not possible to purchase. So, a second-hand car can drive out this question of despair and offer you the scope of owning your dream car at is comparatively low price.
- Less chance of depreciation
There is no doubt that every gadget or technical support to have a lifespan. There is no exception of cars, and the chance of depreciation is higher in cars than in other vehicles. So, when you buy a second-hand car, you are actually postponing the possibility of depreciation a bit slow. This is because, after purchase, you need to remodel the car.
7 reasons why second-hand cars are much pricey than other vehicles
Nowadays, it has been observed that even the second-hand car price has been increasing day by day. Especially in Ireland, the number of second-hand cars is more in demand, and as a result, the supply of such cars should always be within the market. Instead, the increment of the price will become common.
However, apart from the lack of demand, there are so many other reasons for the high second-hand car price. However, people can borrow loans in Ireland to purchase cars, but an adequate supply will help a lot. So, let’s look at some of these reasons for the high price rise.
- Suppliers used to cease supply due to increasing VAT
If VAT and import duty increase, it will become a problem for dealers to stock in vehicles. The car dealers of Ireland need to depend on UK car sellers to upload second-hand car stocks.
With increasing import duty and VAT, it becomes difficult for Irish car sellers to stock second-hand cars. Lack of supply gives birth to an inevitable issue, i.e. high price.
- Tough competitors
In business, a single issue is interconnected with another one. When there is a lack of supply and high demand within the market, consumers move towards that dealer with ample collection. People who are badly in need of care they are buying directly from the sellers of the UK. As a result, it increases tough competition within the market.
Generally, people who are purchasing directly from UK sellers are getting the price comparatively low. On the other hand, buying a car from Irish sellers needs to give a high price.
- Lack of stock
There is no doubt that lack of stock is the main reason for to increment of price. Generally, people who have the car do not sell them directly. Instead, they used to contact a car dealer who may offer the best deal to the car owner.
Basically, in Ireland, everybody strongly depends upon their own vehicle instead of public transport. While there is no supply of cars within the market, people who have a car are not ready to take risks for selling their vehicle. As an inevitable result, there creates a lack of stock within the market.
- There is a lack of manufacturing new car
During the pandemic, the one industry which got hampered the most was the automobile industry. Due to a lack of sales, manufacturers almost stopped production. As a result, when there is a lack of supply of new cars, it will become difficult to increase the supply of old cars.
As mentioned, nobody wants to lose his own vehicle when there is a lack of stock. The automobile is such an industry that should never cease manufacturing because it mobiles the entire market. While the new car production is on hold, then people stop selling their used cars also. Therefore, price rise becomes an inevitable result.
- Lack of manufacturing semiconductor chips
Semiconductor chips play an essential role in new-generation cars. It works as the brain of the car. It hints to us about every problem or concern regarding the car during driving. During a pandemic, suddenly, there takes place the shortage of such chips.
Nowadays, people are habituated with the latest technology, and it becomes challenging to bring back buyers from advanced to backward. The only reason for such a situation is pandemics. When people stopped buying new cars, those manufacturers did not have any option, instead of ceasing the production of such chips.
There is no doubt that when the new car parts stop coming into the market, the demand for new cars will reduce. As a result, car owners are not ready to sell their cars. It created a lack of supply which is the reason for the high price.
- Increasing culture of work from home
When people need not go out of the house, there is no question about buying the car. It is another reason for which lots of automobile companies are compelled to lock and key their shops. During the high waves of pandemic situations, most offices start to offer the opportunity to work from home.
As a result, employees need not go out of the house. Therefore, there is no question of the requirement of a car. This culture of working from home majorly affected the selling of a car. It has become a primary reason which made the automobile industry run in the loss.
When there is no demand, then the price is very low. Now the world is recovering from the hold of germ. Now, again the demand for the second-hand car is coming into the market. However, due to the demand for such vehicles offered the dealers of vehicle sellers to make a profit and merge the loss?
Therefore, the high price even of a second car has become a very common issue.
- Lots of people are eager to buy it
Instead of buying new cars, there is a good percentage of buyers who would like to buy second-hand cars. They think they can easily save money by borrowing no deposit car finance in Ireland. Even many car finance companies offer low-interest rates.
Indeed, there are many other reasons for not buying a second-hand car. Due to increasing demand, price rise becomes a very common factor. These are some common reasons to increase the price of a second-hand car. To bring back into the previous state, the entire industry should work hand in hand.
Caleb works as a senior content writer at Financealoan for the past 3 years. He is a writing enthusiast and invests a good time in exploring and writing about financial trends. His keenness in exploring a topic to create a research-based piece is simply unmatched. He believes in including a texture of authenticity with real-time examples and facts.
Caleb’s blogs and articles reveal deep-seated knowledge and expertise. His educational qualification forms the base of his excellent command over the industry and Jargon. He is a postgraduate in Finance and is currently involved in exploring the world of the stock market.
