5 Reasons To Buy A Second Hand Car In 2018 - Old Mutual iWYZE

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Today, the second hand car market gives the new car market some serious competition – from generally lower costs to car perks previously exclusively associated with new cars.

Over the last couple years, more and more South Africans have been buying used cars. Today, the second hand car market gives the new car market some serious competition – from generally lower costs to car perks previously exclusively associated with new cars.

Plus as an added advantage, you will most likely also save by paying a lower car insurance (https://www.iwyze.co.za/products/car-insurance) premium on a used vehicle. Here are 5 reasons why shopping second hand makes sense:

1. Instant depreciation of new vehicles
Most cars depreciate more when they’re brand new. True story. On average, cars depreciate at a rate of 15 to 20% per year. In the first year, the depreciation will tend toward the higher end of that range, but you will incrementally lose less and less value every year.

When you buy new, you end up carrying the cost of that depreciation; something you won’t have to do if you choose to buy second hand. This depreciation factor also means that you can most likely afford a nicer car with more features than if you decided to buy new.

Some cars do however increase in value over the years, especially if they are regarded as classics.

2. Second hand cars also come with new car perks
Many motorists prefer buying a new car because the purchase will come with a service plan and warranty.

But, should you find the right deal, you can get a used car that’s still within its service plan. You can even sometimes purchase an extension of the service plan and still save money. Alternatively, you can put away a portion of the money you’re saving every month and use that towards services in future.

Similarly, warranties can be extended, or added to the cost of your second hand car.

For instant online insurance quotes go to: https://www.iwyze.co.za/quote

3. Reputable dealers offer some peace of mind
Second hand cars at reputable car dealers are usually well looked after, well priced and almost as good as new. That’s why reputable used car dealerships are recommended over private sellers. You also have a much better chance of having your car fixed at an established dealership if there are future issues, compared to a private seller.

Once you’ve decided on a vehicle, it makes sense getting it checked out by a reputable mechanic. The Automobile Association (AA), for instance, offers full bumper-to-bumper examinations at 11 technical centres around the country.

4. Open to negotiation
Most dealers are open to negotiating on price, meaning you could walk away with an even better deal than you thought you would.

According to motoring expert Wilmer Müller, everything is negotiable. Don’t just buy the first car you like and if you buy from a dealer, negotiate a price that includes all on-the-road costs.

5. Your budget will thank you
Buying a used car will mean more cash in your pocket. That means more money for date night, treating the kids, or to invest wisely.

Whether you go new or second hand, make sure you choose good car insurance to cover your vehicle. Old Mutual iWYZE provides affordable and reliable car insurance that offers 10% of your premiums back in cash every 36 months. Make the wise insurance choice and Get a Car Insurance Quote today: https://www.iwyze.co.za/products/car-general-car-insurance

iWYZE is underwritten by Old Mutual Insure Limited. Authorised Financial Services Provider (FSP 12).

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Zach Motsei
@iwyze
since: 03/2013
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