Cheap, but is it good? A common mistake many people make when buying a used car

In the new car market, significant price increases can be observed year after year, further intensified by the EU’s new, stricter emission regulations. As a result, buying a new vehicle is becoming more challenging for a growing number of private buyers, and demand is increasingly shifting toward the used car market. At the same time—whether purchasing a new or used car—buyers must pay close attention to choosing a truly economical and reliable vehicle.

“The TCO (Total Cost of Ownership) approach, which has been used in international fleet management for decades, is increasingly making its way into the world of private buyers as well. This is no coincidence, as the cost of owning a car consists of many elements such as maintenance, fuel consumption, insurance, and administrative expenses, all of which significantly influence our long-term spending. Therefore, it is by no means certain that a vehicle with a lower purchase price but higher operating costs will be a good decision in the long run,” points out Viktor Hegedűs, Commercial Director of Ayvens.

“Alongside the purchase price, fuel consumption is a key factor: between two cars with the same purchase price, fuel costs can differ by tens of thousands of forints per month. A car that consumes 2 liters more per 100 kilometers, with an annual mileage of 20,000 kilometers and current fuel prices, can increase maintenance costs by as much as 200,000–300,000 forints per year,” our expert warns.

Service costs also represent a significant expense. It makes a big difference whether a mandatory service costs 80,000 or 200,000 forints, and how often major repairs are required. “There can be large differences between brands and models in terms of spare part prices and labor costs associated with repairs. Availability of parts is also an important factor: although the general supply difficulties in the automotive market are largely behind us, the service coverage of a newly introduced brand or the availability of parts from a manufacturer that is less represented on the domestic market can still cause problems and prolonged service processes. Insurance premiums and tax burdens also affect the total cost: for higher-performance or more valuable cars, these costs may be higher as well. We must not forget depreciation either—that is, how much we will be able to sell the car for after a few years. Although this is not a direct expense, it is still a significant factor over the entire ownership period,” explains our specialist.

“With new cars, the greatest depreciation occurs in the first few years—within the first three years, a vehicle can lose as much as 45–50 percent of its value. In the case of 3–5-year-old cars, this process slows down significantly, to around 10–15 percent per year, making them a more favorable choice in terms of value retention,” explains Viktor Hegedűs.

According to our expert, at this age cars have already overcome their early ‘teething problems’ and the major manufacturer-prescribed service interventions, while still having many trouble-free years ahead of them. “With proper maintenance and professional repairs, the lifespan of modern cars far exceeds 10 years, meaning a 3–5-year-old vehicle is still well within the first half of its useful life. Another advantage is that these cars already feature the safety and comfort equipment expected today, while being more affordable than new models. Technological obsolescence is also not yet significant at this age, as most 3–5-year-old cars already offer modern features such as a reversing camera, lane-keeping assist, or automatic climate control.”

“Used cars originating from corporate fleets can be an ideal choice for private buyers in several respects,” says our expert. “These vehicles come with a documented service history that includes all maintenance and repairs carried out. Regular servicing at authorized dealerships provides assurance that the car is in proper technical condition. Occasionally, we can also offer special promotions to buyers, which is not very common in the domestic used car market.”

“Fleet management companies follow strict protocols to monitor the technical condition of vehicles: regular inspections and timely maintenance are standard. Servicing is carried out according to a predefined schedule rather than depending on current financial circumstances. This significantly reduces the risk of later breakdowns,” emphasizes Viktor Hegedűs.

In addition, it is important to highlight that fleet vehicles are generally well equipped, as fleet managers also apply professional criteria when selecting equipment levels. “Since, under operating lease arrangements, the fleet manager bears the residual value risk, fleet cars are typically configured with the most popular, best value-for-money equipment levels. This ensures real comfort and safe driving while avoiding unnecessary and expensive extras. Another advantage is that the mileage of fleet vehicles is precisely known, which is a key factor when buying a used car. With vehicles sold by fleet managers, there is no need to worry about odometer manipulation, which unfortunately is still a common issue in the used car market.”

“Thoughtful used car purchasing is therefore not just about optimizing the purchase price,” concludes Viktor Hegedűs. “By applying the total cost approach, choosing a vehicle of the right age, and prioritizing fleet cars with a documented history, we can significantly reduce our long-term costs and the risk of unexpected expenses. In doing so, we not only protect our wallet, but also gain a reliable companion for our everyday journeys.”