While collectors and brand enthusiasts will look past some of the pitfalls of owning and maintaining a used vehicle that is 10 years and older. The average vehicle buyer that is looking for a vehicle of that age because of affordability, should tread carefully as buying a cheap car could over time become a very expensive endeavour.
Now, before you get an Instant Offer on your car and start your search for a used model on AutoTrader, here are some things to keep in mind whilst browsing the vast options on our website, especially those models that are 10 years or older.
Related: New vs used car financing: What's the difference?
Depreciation
There are a variety of reasons why someone will be looking at slightly older vehicles. One might be that the particular model might soon start appreciating because of its collectability, such as the Ferrari F12 Berlinetta, the last V12-powered GT car by the Italian automaker to be designed by Pininfarina. However, unlike some of these rare sports- and super-cars, most vehicles will continue to depreciate due to there being plenty of that specific model or that collectors don't find it that appealing to own.
For these "regular" cars, most of the depreciation will take place within the first eight years of their life. After that time, it will continue to depreciate but at a very lower rate. In fact, from this article by Old Mutual on the difference between purchasing a new car versus a used car, a new car will experience depreciation of up to 20% in the first year alone.
What does this mean for you?
Considering that most of the depreciation would have happened by year 10, you are most likely to find cars at a very affordable price. Note that the car will continue to depreciate with use and as it ages, however, at a much lower rate per year in comparison to when the car was barely new.
But this depreciation could also mean that you could get a higher specified model or more premium brand at a price that fits your budget, but be careful as this could lead to more expensive services and maintenance.
Vehicle history
Regardless if you are looking for a used Mercedes-Benz on AutoTrader, or are in the market for something more affordable such as a used Honda Civic, obtaining as much information about the vehicle's history, is of high importance. Finding that the vehicle has a full-service history and invoices that indicate that it has undergone larger maintenance jobs, means that the model is looked after and could be the difference between it being reliable or not.
Maintenance and servicing
Choosing an older vehicle does not mean that the servicing and maintenance are going to be more affordable. This is especially true when choosing premium brands such as a used BMW or pre-owned Audi. Some of the parts and components needed to conduct maintenance or repairs can be difficult to get and thus demand higher prices. Specialists that work on the older models sometimes also charge a premium as there are very few people still around that know how to work on these vehicles.
Finance and insurance
Finance
For most vehicle finance institutions, 10 years is right at the limit of vehicles that they would consider financing. This is due to a variety of reasons but usually comes down to the condition and value of the vehicle. Thus, it is important for vehicle buyers to contact their finance house and inquire about the minimum requirements needed by them to consider the application.
Insurance
If you are going to finance the vehicle, you will need to get vehicle insurance. This is so that if anything were to happen with the vehicle, the bank and you as an owner are covered for the losses. While there are a variety of factors that will influence your monthly insurance premium, a vehicle's age could negatively affect the final figure. This is sometimes due to the security features being outdated, making the vehicle easier to steal. However, the make, model and even the colour will play a role in the monthly premium.
Buyer checklist
Before you even head out to look at a potential vehicle that both falls within your budget and or is 10 years of age, we recommend visiting a few owner forums on the internet and even watching a few videos of owners doing maintenance on the particular model. Usually, you will get a good idea if the vehicle is somewhat reliable, as well as what items could potentially go wrong in the future.
While we would always recommend asking the seller for a recent (no older than 3 months) roadworthy certificate, you should always do your own inspection of the vehicle too. Here is a quick list that can be used during the vehicle's inspection with items that you might forget to look out for because of your excitement.
Exterior inspection
- Visually inspect all the panels for dings and dents as well as any lifting paint or obvious rust.
- Inspect the panel gaps where the body parts meet. Uneven panel gaps could indicate damage that could have occurred during a collision and be repaired at a later stage.
- Using a torch, look inside the wheel wells for any rust on either mechanical components, chassis or body parts.
- Inspect the brake pads/drums for any leaks or uneven wear.
- Inspect the age and condition of the tyres, as well as the tread depth. Also, look if the tyres are worn evenly from the inside to the outside.
- Ask the seller if they will switch on the lights, activate the indicators and press the horn to ensure they are all in order. Be sure to note if the rear numberplate light/s are working too.
- Inspect all the glass on the exterior: widows, windscreen, the rear screen and all the lights for cracks or chips.
Interior inspection
- Open the boot and lift the carpet to ensure the spare wheel is present as well as any standard toolkits that might have come with the car. While doing this, also keep an eye out for any rust.
- Test all the windows to ensure that they go up and down without fault or obstructions.
- Turn the ignition key to the first position and inspect if all the vehicle information lights come on. Also, check if the indicator and the dim and high-beam lights come on. Ensure all the gauges such as the fuel level indicator are responding.
- With the vehicle idling, you can test the air conditioning system. Make sure that it provides cool air as well as warm air based on your inputs. Also, ensure that all the vents are open and do not have any obstructions. With the air running, be aware of any smells that could indicate a rodent infestation in the pipes.
- Test the radio and all additional electronics, including any heating features or electrical adjustments available on the seats or steering wheel. Test all manual functionality too.
- Do a general inspection of the trim and upholstery for any tears or scratches.
Engine
- Inspect the engine from above and below from various vantage points to get a clearer picture of the condition.
- Look for any oil or fluid leaks above or below and try to trace them back to the source.
- Look for any rust that could compromise the rigidity of the vehicle or the functionality of mechanical components.
- Look for any bent frames or metal as well as overspray which could indicate that the vehicle was in a collision.
- Look for any loose or disconnected wires or pipes.
- With the engine idling, listen for any mechanical sounds that could indicate that it is not operating correctly.
- Look for any exhaust smoke and note the colour of the smoke;
Blue smoke: This typically indicates that the engine is burning oil.
Black smoke: Black exhaust smoke could indicate an incomplete combustion cycle or an incorrect fuel and air mixture.
White smoke: This could indicate that there is water in the combustion chamber which could be caused by a blown head gasket.
- Find the date engraved on the battery to see when last it was replaced. This could just be one of the first items to fail.
Verdict
While we would always advise vehicle buyers to be very aware and do thorough inspections, especially on older vehicles. Buying a car that is 10 years old could end up saving you a lot of money and get you a lot of value too. But do your research to ensure that the exact make and model you are considering is dependable, as well as affordable to service and maintain, as at this age some of the parts are going to show their age and might need replacement soon.
