Buying a pre-owned vehicle can be a great way to save money on your next purchase. Due to the increased cost of fuel and the rising COE prices, buying pre-owned vehicles may be a more viable option to some. Here are some pros of purchasing pre-owned vehicles:
Less Depreciation
A vehicle’s value drops every year by a certain percentage. There is generally less depreciation on pre-owned vehicles than on new vehicles. Taking this into consideration is important as it gives you an estimated cost of maintenance and repairs in the long run.
To calculate annual depreciation:
(Total Cost of Vehicle – Sale Value of Vehicle) / Number of Years in Service
Less Down Payment For Pre-Owned Vehicles:
One of the benefits of buying pre-owned vehicles is that you don’t have to pay as much for the down payment compared to new vehicles. It varies depending on the vehicle’s make and model.
Lower Insurance Premiums:
Premiums for insurance may be lower for pre-owned vehicles. It also takes the buyer’s age, profile, years of driving experience, and the vehicle’s make and model into consideration. Be sure to source for multiple quotes to snag your best deal! For insurance advice and getting a quote, feel free to contact us at 6933 9781.
Things To Consider
Ownership Transfer Requirements:
Before purchasing a pre-owned car, it is important to consider the ownership transfer requirements. You then need to have the car inspected, and the title transferred. It’s never a bad idea to consult a pre-owned vehicle specialist to find out all the details about a particular vehicle before making your purchase.
If you are purchasing a pre-owned light goods vehicle transferred to yourself and not to a business entity, you will be required to have a valid hawker or farm license.
Additional Maintenance Cost:
Another factor to consider is the additional maintenance cost when getting a used vehicle. This includes changing the brakes, battery, tires, and other refurnishings.
Vehicle’s History:
When it comes to buying a pre-owned vehicle, make sure to look into the vehicle’s past information such as its maintenance records, whether the car has been involved in any accidents or has been reported stolen. This information can be found on the vehicle’s VIN (vehicle identification number).
Final Thoughts:
It is recommended to get multiple quotes so that you are getting the best deal, inspect the car before you buy it, and ensure that your desired vehicle has an accident-free history.
Have a question? Reach out to us at:
marketing@absgroup.sg | 6933 9417 | 8289 9719
