Is it time for a new vehicle?
If so, you’ll want to read this article first before you make any decisions. While we fully understand the appeal of buying a brand new car, you might want to think twice about it. The advantages of buying a used car are quite overwhelming, and even surprising.
In fact, more and more people are liking the idea of buying newer used cars. However, you don’t just want to jump on the bandwagon because it’s popular! Let the facts do the talking.
Check out these top 5 advantages of buying a used car!
Advantages of Buying a Used Car
As we mentioned above, there are a lot of reasons to consider buying a used car. Whatever your reasons are, you can take comfort in knowing just how good of a decision it can turn out to be.
Keep reading as we discuss the best advantages of buying a used car, rather than a new one.
- Lower Price
Obviously, when you buy something used, you’re going to pay less for it. This is one of the most common reasons people opt for used cars. However, there’s a lot more to saving money on used cars than the lower price tag.
Screaming Deals
Dealers often run specials where you can get incredible deals on used cars. If you’re trading in a car, they may be room for some negotiation as well.
Additionally, used cars don’t come with the hidden costs of new cars such as relocation costs, dealer preparations costs, shipping, and more. These fees aren’t dealers being shady, they’re costs that have to be paid. Shipping a car from the manufacturer is far from free.
Less Depreciation
One of the most well-known facts about buying a new car is how much value it loses the moment it leaves the lot. The second that car has an owner, it’s no longer “new.”
Unfortunately, new cars have an accelerated depreciation rate. They lose at least 10% of their value after only one month of ownership. After five years, it can be worth as little as 50-60%.
One of the main advantages of buying a used car is that the brunt of the depreciation has already occurred. It’s often said that while driving home after buying a new car, you might as well be throwing hundred dollar bills out the window. The same cannot be said about buying used.
Presented Opportunities
Buying a used car also provides an opportunity to buy a higher quality vehicle. A new fully-loaded Ram 1500 may be out of the question for you, but a used one could be well within your budget.
When buying used, you can afford to scale up a little in quality and class of the car.
- Lower Secondary Costs
When car shopping, most of us aren’t thinking about the secondary costs of buying a car. This is where the advantages of buying a used car really shine. These costs will be significantly lower than if you buy new.
Financing
Most people don’t walk into a dealership with enough cash in hand to buy a vehicle outright. Therefore, most buyers depend on financing.
Whether it’s through the dealership or the bank, financing a vehicle means paying interest rates. Over a long period of time, these interest rates can add up substantially. Some people buy a new car for $30,000 but end up paying closer to $50,000 when it’s finally paid off.
A used car comes with a low price, which equates to a faster pay-off. The faster you pay off a loan, the less interest you pay over time.
Registration
Registering a new vehicle can be just as much or more than the car payment.
Depending on the state, your vehicle may be more expensive to finance if it’s brand new and/or more valuable. Buying a used car will likely be much less to register.
Insurance
Insurance companies are all about risk assessment. For auto insurance, your fee is based on your age, gender, type of car, and value of the car.
If you have a brand new, $40,000 car, expect to pay a high insurance premium. If you wreck your baby, it’ll cost your insurance a lot to replace it.
- Ample Access to Used Car Information
With the age of technology in full swing, there’s so much information out there about everything.
First, there are countless sources to help you assess the value of used vehicles. They go quite in-depth, based on mileage, condition, features, and so on.
Secondly, it’s quite easy to get your hands on a used vehicles history report. This is one of the major advantages of buying a used car in this day and age. You can see any accident history as well as how many previous owners it’s had, including if it was ever a rental or lease vehicle.
- Certified Pre-Owned Options
For people who want a little more quality and peace of mind while buying a used car, certified pre-owned vehicles are a good option. You’ll pay a little bit more but it’s well worth the extra cost.
Quality
CPO vehicles are put through a rigorous examination to be deemed worthy of the title. It can only have so many miles, have little or no damage in its history, and are often only so many years old.
Different certifying companies/manufacturers have different standards. However, the end result is a high-quality, fully refurbished, like-new vehicle.
Warranties
CPO vehicles also come with warranties from the certifying entity. This may include so many miles after the purchase, years after the purchase, etc.
The warranties can be as comprehensive as bumper to bumper or simply cover mechanical failures. They often come with years of regular maintenance coverage such as oil changes and tire rotations.
Perks
CPO vehicles may also come with benefits such as 24-hour roadside assistance. This could include no towing fees, free flat tire repair, etc.
These perks could also include satellite radio trials, On-Star support, and more.
- Less Waste
If you’re looking for the environmental advantage of buying a used car, we have some things for you to consider. Keep these facts in mind if you’re looking to live a little greener.
Manufacturing
The process of manufacturing and shipping new cars creates as much pollution as driving it. If you’re buying a new car because you think it will be better for the environment, you’d be better off buying used.
Conservation
Additionally, every new thing you buy creates waste. Buying a new item means casting aside the old. It’s no different from cars. Buying a used car rather than a new one is an act of recycling.
Start Your Search Today
If you’re ready to replace your vehicle, consider the advantages of buying a used car. As we discussed in this article, there’s a lot to gain and very little to lose.
Contact us at Homer Skelton for more information. Let us know how we can help you on your journey!
Connect with us
