While purchasing a car, the first question that strikes the mind is- should you buy a used or a new car? New cars host the latest technology and fine interiors; purchasing a used car can be a smart decision. It is ideal for individuals with low income and driving experience. Apart from saving your money, there are other benefits of purchasing a used car in finance.
Thus, if you could relate to the above scenario, a used car may be a viable option. The blog lists how financing a used car can prove a budget-friendly decision.
6 Ways used car finance can be a budget-friendly move
Whether you are a first-time rider or looking to update your ride, used car finance can be ideal for you. One of the primary reasons is that used cars have a lower depreciation rate than new ones. It implies that the price of a used car remains unchanged for a long time while new cars depreciate fast.
Following this, you can trade the remaining equity in the car for new car finance later. It is one of the most profitable ways to improve your finances and driving experience. Let’s analyse other reasons behind used car finance being an economic move:
1) Affordable car finance agreement
As mentioned above, buying a used car on finance can be an affordable decision. It is because the dealers and lenders provide a used car at lower interest rates and costs than a new one. Moreover, individuals with low credit history or scores struggle to get better rates on a new car with the latest features. This is because the finances and credit history do not reveal the affordability that a lender seeks.
However, options like bad credit car finance in Ireland’s marketplace help you get affordable car finance. It is for individuals with struggling credit history and finances. You may get low interest rates with flexible repayment terms. It automatically reduces the overall liabilities towards the car.
2) Lower insurance fees and costs
Buying a used car on finance has another advantage. It is no other than low insurance costs. Every car finance provider desires a customer to apply for car insurance before car finance.
The insurance rates on new cars are incredibly high. It makes the deal cumbersome and beyond budget for people. You can avoid the impact by applying for used car finance. Insurance costs for a used car are generally low. It is due to the wear and tear that a used car goes through.
The older the car, the lower the insurance costs. Thus, you can save on insurance coverage as well. However, analyse the condition of the car before financing. Check whether you have all the associated documents or not. The MOT certificate is the most important. It will help you know the repairs to make before getting it on the road.
3) Immediate fetch for first-time owners
Most students and self-employed struggle to get car finance. Why? It is because of the lack of sufficient driving experience, credit history and income requirements. No responsible lender may provide new car finance to individuals with no possible proof of affordability and driving skills. Thus, if you are 18+, you may benefit from used car finance. You may qualify for this one as it does not have strict criteria to qualify.
However, you must demonstrate decent car driving skills through certification, a driving license, and regular income proof. As the costs of finance are low, having a basic income standard may help you get a car. It grants you the exposure to refine your driving skills and buy a new one in finance.
4) Grants access to diverse models
Do you always dream of riding your favourite SUV? Well, used car finance can help you rationalise that. It grants you access to diverse car models with different and unique specifications to choose from. You lack this facility with new cars where you only get what you can afford.
Whether you want a compact car, a family SUV, or a convertible car, you may find different options in the same. Diversity helps you understand the specifications you want and get the exact car from a bundle. You can consider factors like mileage, fuel requirement, car history, car size, seats, etc., before making the final choice. When you know the purpose behind owning a car, choosing the right one becomes easier.
5) Opportunity to get a lux car at low rates
As a follow-up to the above point, you may get a luxury car for low rates with used car finance. Yes, it is no less than a dream comes true. Who does not want to drive Mercedes’ latest model? For many car enthusiasts, the craze for luxury cars is real! Sleek design, advanced technology and superior performance make the fetch quite enticing.
You can get used luxury cars at 60% lower than the actual car price. The depreciating rates, however, depend on the car’s demand, condition and model. You can experience the thrill of driving a luxurious car without a fat price tag. It is indeed a once-in-a-lifetime opportunity.
6) Quality Assurance and reliability
By purchasing a used car on finance, you share the advantage of having the vehicle’s track record beforehand. You can read through the car mileage, kilometres covered, accidents (if any), or any other major setback it had gone through. Having everything in your hand helps you decide to do better. You can compare cars accordingly. Moreover, you can even know the positives about a car by understanding its MoT. If you know about car mechanisms, it gets easier to know the best parameters a car promises.
However, before approving the car or owning it, it would be ideal to repair it. Check the repair requirement and finance it accordingly. You can also seek relevant loans in Ireland’s marketplace to bridge the repair sum. In situations like low cash flow, it proves an immediate solution to your critical needs. You can get either a short or medium-term loan, depending on the cash requirement.
Bottom line
Thus, used car finance can prove to be a smart financial decision. It is especially for individuals struggling financially but need a car for scheduled needs. It is also ideal for first-time drivers or those with low driving experience and credit history. It can provide a foundation for your driving journey. Later, you can switch to a new car finance with sufficient credit and driving experience.
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.
