Is it beneficial for a student to get a used car with financing?

It has been three months now since you have enrolled in college. The distance between home and your institution is not too short or long. However, reaching college on time in the morning is a challenge, as you have to depend on public transport.

Commuting would have been easy with a personal vehicle. Your family cannot afford a car at this moment. Besides, you are still studying and cannot start a full-time job.

Finding a midway out is tricky in this situation. Wait! You can get a used car that would cost lesser than a new one. Most importantly, you can qualify for car finance for students effortlessly.

You can work part-time to help your parents bear the additional expense. No need to adjust your study hours to earn money. You can use your free time to do something based on your skill. This way, you can manage time for additional income.

Now, you might wonder if getting a used car would make sense, as you will earn additionally. Which option would be suitable for you is subjective. However, this blog can tell you why a second-hand car could be a wise decision.

Why getting a used car can be advantageous for a student?

A new car will always get the first preference. Here, you will be taking out debt and will be earning a side income to manage the cost of instalments. You might feel you are not making the right use of the resources.

Your mindset may change once you explore the benefits of getting a used car.

The cost will be less and budget-friendly

By comparing, you can find out how you can manage to get a second-hand car at 50% less price than a new car. Besides, you can get instant car finance to cover the cost effortlessly because conditions will not be too rigid to fulfil.

Loan payments will be easy on you as financing fees will be quite less. Above all, you do not have to borrow a huge amount, as the price will be a lot less than a brand-new car. A used one can conveniently serve the purpose since you need a car to travel from home to college and vice versa.

Most importantly, you do not have the right budget for a new car. If you get one exceeding your budget, repayment will be unmanageable for you. Moreover, you do not have to take stress about processing fees if you have approached a direct finance provider.

A used car will not carry hidden costs like shipping and destination fees, like a new one. At times, the cost of advertising and marketing adds up to the overall price of the new car. You can subtract these charges in case of a second-hand one.

Cut back the customisation charges by installing add-ons to your car on your own. Otherwise, the dealer might charge you unnecessarily. When you complete some of the arrangements independently, managing the payments becomes effortless, even when you use your savings solely.

Used car to beat depreciation to some extent

Car is undoubtedly a depreciating asset. It will start losing value once it is taken out of the showroom. Its value is not going to revive but drop only with time.

The depreciation factor has already been applied to the used car. Overcome the dilemma of getting a second-hand car by worrying too much about the dropping value of the car. Although you cannot think of getting anything extraordinary by selling a used car, you might sometimes get a good offer price.

You can calculate to get a clear picture of the depreciation aspect. Some car finance companies even allow you to use their tool to find the figure nearest to the cost of the car.

No need to pay high insurance premiums

The insurance premium will automatically be high if you purchase a new car. This is not the case when you will get an old one. The gap insurance factor will not work in the second case. For this reason, the price of the premium will not spike.

One interesting thing about used cars is that gap insurance will be zero here. On the other hand, if you purchase a new car, you will have to agree to pay for gap insurance. There will be no escape.

Environment-friendly decision

When you decide to have a second-hand car, you do your bit for the environment. Getting a used car means no further production of carbon dioxide during manufacturing. You will be recycling an old car, which means no additional carbon dioxide production for shipment.

By opting for a used car, you are saying no to a hybrid car that might use elements harmful to the environment. This way, you can save the environment from facing a larger and fatal impact in future.

Registration fees will be quite less

The registration cost of a new car is usually high. It is because of the worth of the car. The cost will remain high in the initial years and will drop eventually.

You can now calculate how much money you can save by using a used car. A new car might be your dream, but you should reach a certain position where you can afford the additional payouts of a new car. Meanwhile, you can consider having a used car to make your commute time-saving and economical.

The bottom line

The decision between new and used cars is not easy. A wide variety of factors could play a diverse role in your decision as a student. You will have to figure out which ones are your priority.

Do not forget about the amount of financial burden you can bear! Besides, you will have to take note of all the other payouts that will continue with the car finance payments.

Formulate a budget keeping all these facets in mind. Memorise the pointers mentioned in this blog. It will help you point out the decision best for your current situation.

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