Reap the benefits of buying a used car

February 2012

When it comes to buying a car, there are many things to bear in mind - but the first should be whether to purchase a new or used vehicle.

There are various benefits to buying a used car, with the main one being the amount of savings it can lead to.

Used cars are typically cheaper than their newer counterparts and operate just as well providing they have been well-maintained by their previous owners.

Car insurance is often cheaper on used cars, meaning motorists will not find themselves paying out considerable amounts of cash each time their policy needs to be renewed.

Used car prices can usually be negotiated better than on new models, potentially saving drivers yet more money off the cost of their purchase.

One issue that arises when buying a new car is that its worth will depreciate pretty quickly, meaning that as soon as it leaves the forecourt, it will already have declined in value.

The Roy Morgan Leading Indicators Report for December 2011 shows that 2.26 million Australians are intending on buying a new car in the next four years.

This marked an improvement on the 2.23 million who said this in November 2011 and remains above the long-term average of 2.06 million.