In a world where the concept of ‘new’ often takes precedence, there's an undeniable charm to the old and the tried. This sentiment holds especially true when it comes to the realm of automobiles. The allure of a brand-new car is undeniable, but it's essential to consider whether that new car smell is worth the environmental and financial cost.
At Tandem, we firmly believe in the value of used cars, and we're here to tell you why buying a used car is not only a smart financial choice but also an environmentally responsible one.
1. Lower Cost, Less Financial Stress
Let's start with the most apparent advantage: cost savings. A new car may be shiny and enticing, but it comes with a hefty price tag. The moment you drive a new car off the lot, it depreciates significantly, often losing around 15-35% of its value in the first year and up to 50% or more over three years1. With a used car, you let someone else absorb that initial depreciation, making it a much more affordable option. Plus, lower monthly loan payments and less depreciation mean you'll have more money in your pocket for other important financial goals.
2. Reduced Environmental Impact
As a green bank committed to environmental sustainability, we encourage choices that help protect the planet. The production of a new car requires a substantial amount of energy and resources, contributing to carbon emissions and environmental degradation.
To get an idea, according to The Guardian, a Citroen C1 (basic spec) results in 6 tonnes CO2e (remember 1 tonne of CO2 is equivalent to driving 6,000km in a diesel car2), Ford Mondeo (medium spec) results in 17 tonnes CO2e and a Land Rover Discovery (top of the range) results in 35 tonnes CO2e3.
By choosing a used car, you're extending the lifespan of an existing vehicle and reducing the demand for new car production. This not only conserves resources but also minimises the carbon footprint associated with manufacturing, shipping, and disposing of new cars.
3. Depreciation's Sluggish Pace
We've already touched on depreciation, but it's worth emphasising just how advantageous it can be to your finances. Used cars depreciate at a much slower rate than new cars. A well-maintained used car can hold its value remarkably well over the years, giving you a better return on your investment when it eventually comes time to sell or trade it in.
4. Proven Reliability
Modern vehicles are built to last, and many used cars come with extensive maintenance and repair records. With a bit of research, you can find models known for their reliability and longevity, ensuring that your used car will continue to serve you well for years to come. Some models even have loyal followings and online communities where owners share tips and advice for keeping their vehicles in top shape.
So, the next time you're in the market for a vehicle, consider the many advantages of buying used. You'll find that the charm of a well-maintained, eco-friendly, and cost-effective used car could far outweigh the allure of a new car with a hefty price tag.
At Tandem, we understand the importance of making responsible choices, and that's why we offer loans exclusively through used car dealers, to help you embrace the benefits of pre-owned vehicles.
[1] Lease Loco
[2] Radicle
[3] The Guardian
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