Every asset that we own or wish to possess can be classified into two groups: appreciating or depreciating assets. An appreciating asset is an asset whose values go up in price methodically or sporadically. These are the assets considered to be great investments due to their potential resale value.
A depreciating asset, on the other hand, is an asset that goes down in value the moment it has been purchased. There’s still potential to profit off these items, but not as much as the appreciating variety. A prime example of which is any vehicle, personal or not.
With that, we can make the most out of any car even though they do go down in value. All we need to do is carefully shop and consider every aspect that affects how cars perform and sell in the future.
Car History
Second-hand cars can be reliable as new ones but with lower price tags tacked onto them. A second-hand vehicle needs to be Certified Pre-Owned (CPO) because it guarantees that the car has a low mileage and hasn’t suffered any major accidents.
Still, CPO or not, buyers should be aware of the following aspects of a car’s history to make a more informed purchase.
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Warranty
A car warranty, like any warranty, is a manufacturer’s promise to fix any faults not caused by external forces. Usually, these last for three years and will cover car service throughout. Buyers need to know if the car is under warranty or not so they can have the vehicle fixed for free by the manufacturer or a trusted partner should things go awry.
For example, Nissan vehicles can be fixed by any mechanic. Still, the quality of service is likely to be better if they are taken to the manufacturer itself or Nissan service centers in Auckland. That is because these service centers have experts on-site who specialize in the maintenance of said car make instead of general knowledge of how vehicles work.
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Repair Records
With how often cars are used, it isn’t surprising that they incur some damage occasionally. If possible, buyers should try to get a copy of the repair records of their chosen cars. Doing this will grant buyers some peace of mind, knowing that the previous owners haven’t abused the vehicle to the point where they’re not worth purchasing.
Aside from the individual repair history, it’s good to look up how well the chosen car stands up against the test of time and use. Doing so is one of the best ways to gauge if the model is reliable.
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Mileage
Contrary to popular belief, the mileage doesn’t dictate how long of a life a used vehicle has left. Instead, it’s one of the many components that can affect a car’s performance and a used car’s price tag. It also indicates how much wear and tear the vehicle has gone through and which parts need replacing after certain distances have been achieved.
Cars that are five years old are expected to have at least 60,000 miles, considering that the average miles per year are around 12,000 to 13,000. It’s supposed to be much higher for vehicles who went through long distances for the commute.
With that said, there’s a lot more to be done to ensure that the used car is worth purchasing, like testing it or having a mechanic check its state. Knowing these components, however, is no laughing matter since buyers tend to be more aware of what to look out for after their research.
