A used car, a pre-owned vehicle, or a second-hand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, leasing offices, auctions, and private party sales. Some car retailers offer “no-haggle prices,” “certified” used cars, and extended service plans or warranties.
Buying the Right Used Car for Your Transport and Logistics Company
You can save a lot of cash by buying a used car instead of a new one. Regardless of the type of vehicle you have in mind (average vehicle or “dream machine”), there are lots of options to choose from.
However, with the plethora of strong-willed salesmen, amongst other factors, it can seem a daunting task. Luckily, we at Glacier Vehicles, have a book of guidelines to eliminate probable surprises.
The average new car goes for around £28,500. However, when it has been used for over a year, and has racked up 10,000 miles, it drops to £21,000 – a whopping 27% reduction in the just the first year. Its depreciation rate will most likely slump again by half in the second year, meaning a loss in value of around £3,750.
Choosing the Best Used Vehicle
There is no need to spend time and energy on research, we’ve already done that for you. Compare the running costs of different vehicles you’re looking to buy on numerous websites, including ours, http://www.glaciervehicles.com/. How do you choose the best used vehicle? It’s a no brainer, just consider the following criteria:
- Smaller engines are more economic
- Petrol cars are usually cheaper than diesel, but
- Diesel cars have better fuel economy ratings
- Most manual cars are cheaper than automatic.
“How Much Will It Cost Me?” Checklist
Before doing your financial calculations, you need to make a decision on what model of car you want. Your budget should come in two kinds: upfront and continuous. Be sure to think critically and make financial provisions for the following:
- Upfront Costs: If you’ve decided to buy a car, then you know it’s not free, you will have to pay one way or another. Paying upfront is an option, but you can also decide to take up a finance deal. Whatever decision you make, just know that you have to make some kind of initial payment.
- Finance or Loan Repayments: So, you have probably taken a personal loan or some kind of finance deal. In that case you will have to find a way to repay.
- Costs of Fuel: You need to work out the cost of fueling your car. This may seem difficult to achieve, but there are ways around it. The UK Government’s website has a fuel consumption search tool that can do the calculation for you. The system works out the car’s miles per gallon ratio.
- Tax: The site also reveals how much road tax you need to pay on your car. Tax costs range from the minimal (£0) to more than £1,000 in the first year. The subsequent rates, as standard is at about £500/year.
- Car insurance: Your car insurance will be calculated on the parameters set by your insurance company. For instance, if you are still quite young, and have just aced your test, you may have to pay more for your cover. Breakdown cover will also increase the cost.
- MOTs: MOT is an acronym for the Ministry of Transport vehicle test. Immediately when your car reaches the age of three, you are required by law to starting pay for MOTs on a yearly basis. An MOT costs in the region of £50.00 and more.
If your transport and logistics business is a startup, then buying a used car will be easier on your finances. After settling properly into your new business (financial stability and growing customer base), you may then decide to buy a new car.
Ready to buy that car? We thought you’d never ask. You can reach us on 0208 668 7579.