With a surge in petrol costs and COE prices reaching a record high, owning a car in Singapore looks to be getting even more expensive for quite some time. This is undoubtedly unwelcome news for those who find themselves requiring a car, and also why many are now turning to used cars for sale as a viable option. While purchasing a brand new car can be an exhilarating thought, opting for a second hand car in Singapore also has its own advantages. Read on to learn about the benefits of buying a second hand car, and how it could turn out to be the right decision for you.
Value for money
One of the main reasons why drivers would purchase a used car over a new car for sale would be in the significant savings to be had. You can own a second hand car of your preferred model at a much lesser price compared to a new car of the same model. For instance, the newly launched Suzuki Swift Mild Hybrid costs about S$115,000 brand new. However, a similar model with eight years left in its COE will set you back at less than S$90,000. This way, you save 24.45% of the original price, showing how choosing a second hand car instead can prove to be the more financially prudent choice.
An added advantage of buying a second hand car is the slower rate of depreciation. A second hand car depreciates at a much slower rate than a new one. This is because the car would have already undergone its major depreciation once you get behind the wheel. Brand new cars for sale, on the other hand, depreciate the moment they leave the lot. This can extend to luxury models too; luxury cars that were too expensive when brand new, could be a bit more affordable when sold as a second hand car, making it easier for you to fulfil your dream of owning a high-end model.
Cheaper car insurance
A lesser known fact is that car insurance for a second hand car tends to be lower than that of a new one. This is because a key factor in determining the cost of car insurance is the market value of the car. It is important to note that all drivers in Singapore are required to be covered by a motor insurance policy. This is a necessity before your road tax may be renewed, and as such, the policy should cover the entire road tax renewal period.
Option to refinance your car
Purchasing a second hand car with a car dealer also gives you the payment option for refinancing services. Refinancing allows for lower monthly repayments, and a flexible car loan scheme with a purchase price that can be tailored to your needs. This is especially useful for buyers who have a bad credit rating, or are unable to get a loan from a bank.
The benefits of going for a second hand car are aplenty. If you’re considering a second hand car, we recommend heading down to a car dealer to experience a test drive and find out more. Think One carries a range of services for both commercial vehicle leasing and second hand cars. Speak to our reliable team of automotive experts today!