Buying a Car? Why Depreciation Matters

Are you in the market to buy your first car? You may be in the position to buy something brand-new from a dealer forecourt, but you should nevertheless compare the cost with an alternative used car. Why should you consider buying second-hand instead?

Delivery Costs

First, when you look at the car in front of you, you need to consider how much it cost to deliver it to this location. If it's used, then the cost will be negligible as it was probably driven to the used car dealer at no cost by its previous owner. However, due to the fact that the Australian automobile industry has been decimated in recent years by market forces and government decisions, a brand-new car will have been imported and this will be reflected in the pricing.

The Costs of Sprawl

You need to consider the marketing juggernaut that is behind every single new car, as this is a significant part of the sticker price. This will not only include the aforementioned price of distribution but the showroom and accompanying overheads. A new car facility is often in a prime location, needs to pay high rates and will employ a large number of people. They need to account for maintenance facilities and parts storage, and when you buy a used car, this superfluous expenditure is kept to a minimum. This will definitely reflect in the price that you pay.

Are You Sitting down?

When you buy a used car, you don't need to hold your breath as you drive it from the forecourt onto the public street. However, with a new vehicle this simple movement can be very painful, as all the marketing, distribution and dealer markup costs evaporate as soon as the brand-new car becomes second-hand. Isn't it better to save that money and find a good quality used car of the same make and model?

Servicing and Parts

When you buy a good used car from a reputable facility, they will stand behind your purchase. Furthermore, they won't insist that you bring the vehicle into their garage for servicing and authentic parts. You may well be tied into this type of agreement if you were to go down the new car route.

The Bottom Line

Above all, remember that when you buy a used car you won't need to deal with any massive depreciation as soon as you wave goodbye to the salesman. Always remember to take this depreciation into account before you buy a vehicle of any kind.

About Me

Secret Admirer - Confessions About An Auto Obsession

G'day. Prior to meeting my wife, I had very little interest in autos. I wanted a reliable car that got me from A to B and nothing more. My wife runs her own business which involves putting a special coating on vehicles to prevent scratches. Over time, after seeing the high-end autos in her workshop, I started to understand why people become obsessed! Some of the massive shiny trucks that she works on can literally take my breath away. There are always motor magazines and brochures lying around the house that I can't resist reading. My wife doesn't know how much I like autos now. She always tells friends that I have no interest and I am too embarrassed to admit otherwise. Rather than come out of the closet, so to speak, I have created this blog to celebrate the world of autos. I hope you enjoy my humble jottings.




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