Is Buying a Used Car Worth It?

Buying a second hand (used) car can save a lot of money over buying a new car, but is it worth it?

Let's look at the benefits of buying a second hand car:

  • Lower cost
  • Cheaper insurance
  • Lower depreciation

All of those are major benefits, but keep in mind that the cost of a car is not simply the initial purchase price, but the cost of owning and maintaining the car over the years. With this in mind, let's look at some of the negatives of purchasing a second hand car

  • More frequent maintenance
  • No maintenance plan
  • Potential difficulty in finding parts

Older cars are prone to more frequent mechanical issues and therefore can cost more than a newer car to maintain. New cars also generally include a maintenance plan and a warranty which can save you money on maintaining the car

Parts for older cars can also be difficult to find as they may not be manufactured any more

The rule of thumb when buying a second hand car is to find a sweet spot between a new vehicle and an old vehicle. Preferably, look for a second hand car that still has a partial maintenance plan and a warranty.

If you're looking to buy a second hand car or sell your car, check the estimated car book value here

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