There are two ways to purchase a van: going brand new or looking for a second-hand or used van, which both have advantages and disadvantages. But, if there’s something that used vehicles provide for people looking for a new van, purchasing a used van is more of a sound investment than buying a new one. In this article, we’ll cover why purchasing a used van is a wise investment.
1. Reduced insurance costs
If you have experience buying both brand new and old vans, you’ll notice that your insurance company will charge less to insure used vans. Why? Because the more expensive a van is, the more expensive it is to insure, and since used vans come cheaper, they are also cheaper to insure.
Of course, while used vans are cheaper to insure, it’s vital to remember that it’s not always the case because there are more factors at play other than the van’s value, such as your age and credit score. Furthermore, it can also highly vary depending on the brand and model of your van and who your insurance company is.
2. Older vans take longer to depreciate
Depreciation is the difference between a brand new van’s and a used van’s value. When a new van is taken out of the van dealer, its value immediately depreciates. It continues to drop in value as the van gets older and you put more and more miles on it.
Since used vans come cheap already, they don’t depreciate as much as brand new vans, which depreciate at a higher rate since they are more expensive. Generally, a new van depreciates about 20-30% of its value once purchased.
But, once a van becomes five years old, the van’s depreciation rate will go down. It will stop once it becomes ten years old, as its value will become too low.
By buying a used van, you can get a van that depreciates slowly. If it’s an old used van, you can get a van that doesn’t depreciate, although it might require more maintenance.
3. Cheaper dealership fees
In terms of dealer costs, it costs less to purchase a new van, which covers the registration fees, used van sales tax, and documentation expenses. On the other hand, since a used van requires a new registration, taxes, and new documentation, all the dealership fees can rise by 8-10% of the van’s brand new price.
4. Used vans are still reliable vans
Even used vans can be reliable, especially when taken care of well and with a warranty. To ensure you’re protected from any issues that might come from the van manufacturer’s factory or equipment failure, your used van still needs to have a warranty.
The van’s warranty will be transferred from the previous owner to your name when you buy a used van. With a warranty, you can rely on insurance if you ever encounter a problem with the van. Since used vans already have wear and tear, you can expect some repairs and replacements down the line. The warranty and insurance will help you by shouldering the labor costs and replacement parts.
5. Peace of mind
Since brand new vehicles cost more, you’ll feel the need to take care of your new van as much as possible and become anxious about getting minor scratches or damages. But, when you purchase a used van, you don’t have to worry as much because while it’s still a reliable vehicle that can take you to places, it doesn’t have enough value to lose from minor dents and scratches.
Furthermore, instead of focusing on how your van will handle your drives, you can focus on the drive itself more and drive even safer. Buying a used van gets you peace of mind while getting a van at a lower price.
How to find great deals on used van finance
If you’ve decided that you’re better off getting a used van rather than a new one, here are some tips to help you find great deals on used van finance:
- Research – Even if a used van is cheaper, it’s still expensive, which is why you need to do your research. To start, you can try to search the internet for articles and tools that can help you find different options. You can also look for online marketplace websites focusing on buying and selling second-hand vehicles.
- Ask questions – Searching online can only provide you with so much. Sometimes, it’s still helpful to ask around. If you have friends and family who own vans, you can ask them how they got their vans and if they know a van dealer that can help you get a great deal. Through this, you can contact different van dealers and go for a test drive to ensure that the van isn’t just good financially but also that the van is good, safe, and reliable. It will also give you a firsthand experience of how the used van runs.
- Set your budget and stick to it – When searching for a used van, it’s crucial to have a budget that you’ll stick to, so you can avoid getting a loan for a van that you can’t really afford or is too much of a hit on your bank account.
People usually buy used vans for their practicality. If you want to be practical, you’ll wish to get deals on used van finance that can help you get a great van at a price you’re happy with.