GP: New vs. Used: How the Used Car Industry Has Taken Over

The economic downturn has hit pretty much everyone with people across the globe being forced to tighten their belts and keep a closer eye on their spending. Luxury holidays each year are now a thing of the past for many, and spending hundreds on the family food shop has turned into finding the best offers and packages available.

The motoring industry has also taken a hit, with new car sales falling far below previous levels while the used car market is flourishing. Customers have taken the decision to go with second or even third-hand models with good characteristics and features, rather than buying brand new models, choosing to spend less in an attempt to make their money go further and – where necessary – getting Chevy parts in Texas or online if they have to make repairs or modifications until they’re happy.

One reason for the surge in used car sales is that motorists have become more aware of depreciation rates since they started paying closer attention to their finances. Buying a new car might be very appealing at the time, but when it comes to selling it two or three years down the line, you can find that the value has dropped by around 50%. As a result, people are spending less money on the cars they’re buying (i.e. used cars), and making less of a loss when it comes to selling up.

Another reason behind the rise in used car purchases is because people just want a car to drive, they don’t want all of the elaborate electronics and entertainment systems that you get in the more modern vehicles and subsequently drive the prices upwards. You can get a perfectly good used version of the same car that might be just two years older than the new model for around half the price, just because of the enhanced experienced you get in the new model and people are deciding that they can’t part with the money.

There are still a number of advantages to buying new cars, however, if you can afford to. The first of which is that you get to choose the exact specifications of the car you want. Manufacturers will produce a range of the same model with different engine sizes, convertible versions and models with leather seats, for example.

Another benefit is that you will get to take advantage of the full warranty from the manufacturer, having access to the policy from day one. Some cars are sold with ten-year warranties from the day of the first purchase, but if you buy it second-hand you don’t get the full benefit of the ten-year coverage.

That being said, the advantages of buying new in today’s market don’t outweigh those of buying used. Second-hand cars can have as little as a few hundred miles on the clock, having been driven between showrooms or as company cars for a brief period and have to be marked and priced as “used”, even if they are barely run in. You can pick up some incredible deals on used cars if you do your homework.

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