Advantages and disadvantages of buying a used car

by time news

2023-05-12 00:33:40

VO sales during the first quarter of 2023 already grew by 3.3%, with a total of 467,282 units, a sign that the used market is becoming plan A for many Spaniards compared to the new vehicle.

A lower price (between 3,500 and 4,000 euros cheaper for VO compared to VN) and the zero waiting time in delivery position the used one better than the new one in front of the consumer.

Thus, it is estimated that sales of used and second-hand passenger cars and SUVs will grow by 3.8% this year to 1.96 million units, according to AutoScout24Sumauto’s specialist used vehicle portal, based on MSI data.

However, the VO market will add four consecutive years below the barrier of two million units sold, a threshold that was exceeded in 2018 and 2019. And this is due to the economic context and a still oversized used price .

Regarding the first, the existing economic uncertainty, marked mainly by inflation still at very high levels -prices will rise by 3.6% at the end of 2023, according to the Bank of Spain-, and conservative forecasts for GDP growth -the level of wealth will moderate to 1.6%- continue to “feed” the feeling of “permacrisis” in Spaniards.

Regarding the second, in the case of electrified cars, its average price is 34,075 euros, when six months ago the amount was 4.8% lower (32,500 euros), according to AutoScout24 based on Green Car data. Autobiz VO monitor.

In the case of combustion, its average price has remained stable in the range of 21,000 euros in recent months, although with a higher rate compared to 19,000-20,000 euros a year ago.

What opportunities are there for the VO market?

Although a vertiginous fall in prices is not expected, the fact that the stock of cars increases will allow them to gradually begin to fall. In fact, the market has 14% more units for sale than six months ago. And more offer, more competitive prices.

Another factor that may continue to encourage the VO market is that Spaniards still have a certain level of savings accumulated during the pandemic -in 2020, the savings rate was above 17%, its highest quota, according to the INE-. It is true that this cushion has been progressively decreasing -13.8% in 2021 and 7.7% in 2022-, but the “piggy bank” of citizens is prompting them to make several of the postponed purchases, including the car .

Nor should we forget the implementation of the ZBE (Zones of Low Emissions) and an increasingly aged car park -14 years on average-, so that the VO stands as the great alternative to renew a motorization, without the need for make a large financial outlay.

However, all this will be possible if prices become more accessible to buyers. For AutoScout24, there is a margin of decrease of around 20% without diminishing the profitability for the seller.

According to Ignacio García Rojí, spokesperson for AutoScout24, “now purchases are essentially out of necessity. But if prices drop, this market may attract a buyer looking for something aspirational and waiting for better times to move forward. If we hook it up again, the market could again exceed the two million units that we have not recovered after the pandemic.

Before buying a second hand car

When buying a second-hand car, whether it is pre-owned or older, the DGT recommends, first of all, it is convenient to check the technical aspects: the bodywork, the blows, rust, general condition of the paint… Once Once this has been reviewed, it is important to move on to less obvious aspects, such as the condition of the tires —which have more than 1.6 mm of tread—, the oil level and the condition of the timing belt.

It is essential to test drive the car before buying it and to be attentive to see if there are any improper sounds or if all electrical elements are working properly. Now is a good time to check the interior of the vehicle and see the state of the upholstery, the belts or the operation of the seats, as well as the feel of the tires.

Just as mechanics is relevant, it is essential that the car have all the papers in order. the DGT You can issue the so-called reduced vehicle status report, which lets you know if the car is registered or if it has any pending incident, such as a pending sanction or if you have paid the road tax.

Finally, Tráfico has a form on its website to carry out the purchase contract, a document that protects the parties before this transaction as well as the change of ownership. This transaction must be carried out justifying the payment of the Patrimonial Transfer Tax, with model 620 or 61, depending on the autonomous community.

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