Buying something new boosts your shopping experience and gives you incredible pleasure. Smoothly polished doors, a soft touch of a steering wheel, a noise-free engine, and good chemistry between a clutch and an accelerator are all worth the penny you spend on your brand-new car. If you have been living a life of Riley, you are not going to have any problem making payments upfront, but what if your financial circumstances are not as good as you imagine? Here comes the role of a used car.

A second-hand car can come in handy when you are cash-strapped. New cars are expensive, and they are even more expensive when you finance them with personal loans in Ireland. It is because you are to pay interest on top of what you borrow, which adds up to the total cost of the car you buy. Since cars lose their value because of depreciation, you can buy a used car at half of the price. The availability of a down payment will further reduce the loan-to-value ratio, and, as a result, you will have to pay less interest.

Why should you prefer a used car to a new car?

 There is no denying that a new car is a much better alternative to a used car as you will not face any issues soon, but when you are on a shoestring, buying a used car sounds more reasonable than buying a new car. Here are the reasons why it is a smart choice:

• Less financial stress

The financial burden will be too high when you buy a more expensive car. Loans can spread monthly payments, and they cost you a lot of money. When you buy a used car, the cost is halved. As a result, you do not have to borrow a larger sum of money.

If you are looking for a cheaper model, it is likely that you do not need to borrow a larger sum. Your down payment can be sufficient to buy the car. If you are to take out a used car loan in Ireland, you will not have to pay down a lot of money.

However, keep your credit score in good condition. A bad credit rating will force you to pay upfront a larger sum of money despite paying high interest. The cost of your debt will go up, and you will unnecessarily feel the pressure of debt payments.

• Lower insurance

Another benefit of buying a used car is lower insurance. Luxurious and brand-new cars cost you a high premium because their spare parts and maintenance are expensive. You will struggle to get affordable insurance if your car is new and luxurious. However, the insurance policy will be way affordable if you are buying a used car. Since the cost is not high, you will not be charged very high prices.

As your car continues to depreciate, the premium amount goes down. However, you should try to choose an insurer that provides you with the best insurance policy. Compare rates and then choose a deal. There is no need to stick to your current provider if you are getting an affordable deal from another insurer, but sometimes your insurer can ask you to stick to them by offering higher discounts. When you apply for the renewal of your insurance, comparing prices also plays a crucial role in deciding the cost of your insurance.

• You make more bang for your bucks

Buying a used car will help you make more bang for your buck because the money you save on the car cost can be utilised for other important projects. For instance, you can use that money as a deposit for your mortgage and a car loan, or you can simply invest that money.

In fact, you can use that money to make a better model of a used car. It is likely that you cannot buy a new model of a prestigious car, but you can buy a used car of the same model. In other words, you can potentially drive a better model with advanced specifications.

• Slower depreciation

While all cars depreciate over time, used cars do not depreciate so fast. This means that if you decide to sell your car in the future, you will most likely get better prices. The salvage value of a used car is more likely to be higher than that of a new car in terms of the amount invested in it.

• Eco-friendly cars

You can show that you are making environmentally friendly choices. Used cars do not release as much carbon emission as new cars. You can minimise the contribution to carbon emissions by opting for a used car.

Things you should consider while buying a used car

If you want to make the most of your used car, a rule of thumb says that you should be careful while buying a used car:

• You should buy a used car that is in good condition. Make sure that the previous history of the car is not so bad. If the mileage is too high, it is likely that you will end up splurging money on maintenance and selling your car before clearing your debts. make sure that you look for rattling sound, oil leaks, jammed windows, hard clutch and smoothness while changing the gear.
• Check out all the documents. Any discrepancies will cause a lot of future problems down the line. Do not forget to test drive so you know it is smooth while driving. Any strange sounds should ring the bell.

The bottom line

Buying a used car may be a good decision when you are running out of money. One of the greatest benefits is that you do not need a larger sum to buy a car. You do not need to bear the pressure of arranging a larger deposit. In fact, if you take out an auto loan, you will find them way cheaper. Moreover, by arranging a larger deposit size, you might be paying less money in interest.

You can also save a lot of money in insurance premiums. A used car also releases low carbon dioxide, and hence, it is more environmentally friendly than a new car. Apart from that, you can get a better return than a new car against your investment at the time of selling it. Make sure you buy a used car that is in good condition.