While there are also discounted rates or bargain buys on brand new vehicles, buying pre-loved cars --particularly those that are less than two-years old-- can help you keep some of your savings in the bank. Below are the benefits of buying a pre-loved car over a brand new one:
Lower price, less depreciation—To state the obvious, second-hand cars are better bargains even when compared to discounted brand new ones as the original owner has already taken up some of the depreciation, which means lower financing cost for you. So would you rather be the first buyer, who will immediately lose tens of thousands of pesos as soon as you drive your brand new car from the car dealership (due to depreciation) or the second buyer who gets to keep the same amount of money in your bank account? This is not to say your pre-loved car isn’t going to depreciate in value but at least you will avoid the hit that the original owner took and you will lose less money less quickly.
Lower insurance rates. Car insurance rates for a new car are evidently higher as you will be paying a premium on a costlier unit compared to a pre-owned car that already depreciated in value. Simply put, the value of a used car is lower than the value of a brand new vehicle, thus, insurance cost is also much lower.
Cheaper installation of additional features you actually want—Brand new cars usually come with add-ons that you can easily get at a much lower price outside of a car dealership. This means opting for a second-hand car will save you from paying for add-on features you didn’t ask for and enable you to get every car feature you actually want at a lower price. If you’re lucky, the pre-loved vehicle you’re eyeing may already have a lot of additional features you need not pay for.
Manufacturer’s warranty—If you look patiently enough, you may be able to snag a pre-owned vehicle with an existing manufacturer’s warranty, the same benefit that you get when buying a brand new vehicle.
Wide selection of cars to choose from—Just because you’re opting for a second hand vehicle doesn’t mean your choices are limited. Chances are you will most likely find the car make and model that you prefer without difficulty. On the contrary, buying a brand new car will restrict you to recently-released car models.
The PSBank Auto Loan with Prime Rebate offers competitive interest rates, flexible payment terms, and convenient modes of payment to suit your car financing requirements. To ensure that you are on the road in no time, credit decision on your loan approval will be sent to you via SMS in as fast as 24 hours. What’s more, you can even earn rebates for making advance or excess payments on your monthly dues.
Buying a pre-owned car from PSBank Pre-Owned Automart also saves you the trouble of potentially buying a vehicle from fraudsters. Second-hand cars sold by the bank are in the market simply because the original owner could not keep up with loan repayment. This means you are likely to find best-in-quality pre-owned cars at the PSBank Pre-Owned Automart. Needless to say, if you’re considering to buy a second-hand vehicle, you should know what you’re looking for, what you’re willing to compromise on and how you’re planning to check for quality.
About PSBank
PSBank is a key player in the Philippine consumer banking industry. The Bank emerged as the 2nd strongest bank in the Asian Banker's AB500 annual ranking 2016-2017 edition. PSBank is the only savings bank that has consistently cornered a spot in the list of the top 10 strongest banks in the country for six consecutive years. The Bank’s network has expanded to more than 200 branches and over 600 ATMs nationwide.