5 reasons to buy a used luxury car
Do you dream of owning a Mercedes-Benz, a BMW, or even a Mazda but haven’t been able to justify the price tag? The good news is, you can still consider pre-owned myTukar Certified luxury cars! All cars go through a thorough 160-point inspection, where we’ll find and fix all faults, plus a robust refurbishment process where we use the best spray paints, detailing processes and products. All myTukar Certified cars also do not have any major accident, fire or flood damage – that’s how you get a used car that is As Good As New! But here are some other reasons that make a used luxury car compelling:
Drive home immediately
As car manufacturers slowly return to full production, some luxury car retailers remind buyers to consider their options up to six months in advance. But why wait that long when you can drive a myTukar Certified car home immediately? Plus, with myTukar, you can get a 5-day money back guarantee, which means even if you change your mind, you can still return it! No questions asked. Not something you can do with a brand new car.
All cars depreciate the moment you drive them off the lot. Some more so than others. But if you buy a used luxury car, much of the depreciation would have already been paid by the previous owner so long as the car has passed its depreciation inflection point as in the first few years of ownership, a car’s value drops significantly. A Mercedes C-class loses roughly 23% of its value in the first year alone.
Once it reaches the inflection point however, the value continues to decrease, but at a much slower rate. This rate is different for different cars. But if you buy a used luxury car that has passed its inflection point, your car will retain more of its value as time goes by as depreciation slows down.
Read more: Car depreciation what is it all about
|Years Old||Depreciation||Residual Value||Resale Value|
Based on the above charts, there are three good times to buy a Mercedes-Benz C-Class. The first is the one-year mark, the second at the five-year mark, and the third at the 8-year mark. Just before each of these intervals, the value of the car drops, so if you buy a car at these times, you are saving RM64,670, RM29,611, and RM37,519 more than if you bought the car a year before. You would also want to sell your car in the fourth and seventh year, so that you can get the most of your car’s value.
Read more: How to sell your car with myTukar
Save on insurance premiums
Insurance premiums are determined by the value of your car. Newer cars with their value intact will have higher insurance premiums. This is in contrast with used luxury cars which have depreciated which results in lower insurance premiums. Therefore you are not only saving on depreciation, you are also saving on insurance! As used cars start at a lower price, you end up paying much less overall even with a higher interest rate.
The table below shows an example of a car that is one year old with 25% depreciation and the total value of the car.
|Car year||Value (RM)||Interest (%)||Monthly interest payment (RM)||Yearly interest payments (RM)||9 year interest payment (RM)||Total|
Of course, used cars may be at risk of maintenance issues, which is why all myTukar Certified cars come with a 12-month warranty for engine and gearbox and even a 5-day money back guarantee in case you find out the car isn’t for you.
More for less
Luxury does not come cheap. Luxury cars all come with price tags that can break the bank. But if you are getting a used luxury car, you can enjoy the luxury at significantly lower prices as the depreciation hits the first owner the hardest. So if you get a one year old used luxury car, it will already be cheaper than a brand new one.
Mercedes Benz lists the C 200 Avantgarde Line at RM292,888. Used luxury cars tend to go for much lower, for example, this 2016 version of the same car goes at RM160,800.
If you make a 10% down payment and have to pay a 7 year loan with a fixed interest rate of 3.5%, you will have to pay RM2,058 per month for the above myTukar Certified car but pay nearly double for the new car at RM3,906.92.
|myTukar Certified Mercedes C 200||Mercedes C 200|
|Full price (RM)||168,800||292,888|
|Down payment (RM)||16,080||29,288.8|
|Monthly repayment (RM)||2,058||3,906.92|
You deserve nothing but the best, so why limit yourself? Why buy a new car from a lower segment when you can get a luxury car? If you had RM3,000 monthly, would you rather spend it on a new Camry or a Mercedes?
A Camry today goes for RM219,800. With a 10% down payment of RM21,980, you still have to pay off RM197,820, or RM2,809 a month over 7 years with a 2.75 % interest.
A 2015 Mercedes C 200 Avantgarde in contrast goes at RM160,800. With the same down payment of RM21,980, you would still have to pay off RM138,820. Even with a much higher interest rate of 3.5% spread over the same 7 years, your monthly repayments are only RM2,058 a month. That is a RM800 difference! If you put a 10% down payment of RM16,080 instead, the monthly repayment would be RM2,145, still lower than a new Camry!
|myTukar Certified Mercedes C 200||myTukar Certified Mercedes C 200||Camry 2.5|
|Full price (RM)||160,800||160,800||219,800|
|Down payment (RM)||21,980||16,080||21,980|
|Monthly repayment (RM)||2,058||2,145||2,809|
Own a luxury car
You deserve to drive in comfort and style. Cruise over to myTukar and drive home a myTukar Certified luxury car! Or visit one of our retail experience centres to see them up close and personal!