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Do Pre-owned Cars Hold Value?

To buy or not to buy? That is the question most people ask themselves before making any purchases, especially when it comes to cars. With a fluctuating global financial climate, buyers want to stretch their budget despite their desire to own a car. Should they consider buying a brand-new unit or take a risk with a used or pre-owned vehicle?

Choosing between new and pre-owned is tough, but if you want value-for-money but on a budget, go for a pre-owned vehicle. Here are some of the reasons why it’s the better choice:

It’s already depreciated

As soon as a unit drives off the factory, a car’s value has already decreased by ten percent (10%). After a year of its production, its market value further reduces by twenty percent (20%). Brand-new units depreciate faster because of competition.

The main advantage of purchasing a pre-owned vehicle is that it’s already depreciated. It’s similar to most Holden cars for sale, which are cheap but reliable.

car owner

It’s a “premium choice”

Certified Pre-Owned (CPO) vehicles are popular among luxury car aficionados. Most of them prefer these units because it’s cheaper than a brand-new unit. Dealerships follow strict guidelines before certifying a vehicle as CPO. Units will undergo a 200-point checkup to ensure that they are as good as their new counterparts.

A vehicle’s age is also considered because older vehicles (more than five years) might suffer from several issues such as mileage and fuel efficiency. Another benefit of owning a CPO unit is the extended warranty on parts and services. Some car manufacturers include emergency roadside assistance as an added benefit.

It’s as reliable as a brand-new unit

Pre-owned units for certification are thoroughly inspected to ensure it deserves a premium badge. The dealership will first examine the records and run a background check to verify its ownership. After checking the documents, the unit will be reviewed and double-checked by mechanics to spot any potential problems.

Its interior will also be refurbished and brought back to its factory state. Damaged parts are replaced, and even the vehicle’s body will be repaired to give it a fresh, new look. The unit is now as comfortable and reliable as its brand-new counterpart.

It’s cost-effective and offers dealership assistance

Some of the additional advantages of purchasing a pre-owned unit are the lower registration fees and insurance rates. Their overall market value has already depreciated, benefiting their would-be owners of discounted insurance rates and registration fees. A vehicle’s age is critical when calculating its value.

Aside from a significant markdown on rates and fees, dealerships offer assistance with the paperwork. They will make sure that the transfer of ownership will be smooth and hassle-free. The dealership can even haggle for the best rates for its customers.

Do pre-owned cars hold value? Yes, they do! They might be a bit expensive than an average used car, but you will get what you paid for. Think of it as owning your dream vehicle for half its market value.

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