Are there advantages to buying a used car?
A slick and shiny exterior, plush interior, the smooth purring of the engine – these are all factors that seduce people into buying a new car. However, many buyers don’t realize that used cars have a host of advantages of their own. Used cars are often much more economical, reliable, and equally attractive, if purchased from the right dealership.
Here are some advantages of purchasing a used car, designed to help you think twice before pulling out your checkbook.
There’s no way around it, buying a car is expensive, especially brand new cars that have just rolled off the assembly line. By opting for a used car, you can cut your budget nearly in half in many cases. While the model may be slightly older, in most cases, you won’t feel the difference once you’re on the road.
Most new models only feature slight improvements compared to their older counterparts, meaning it makes sense to compromise on those small enhancements in exchange for big savings.
No Extra Costs
New cars often come with additional costs like shipping, destination fee, dealer preparation, sales tax, and higher registration fees. A used car will not have most of these, and the taxes and registration fees are very low because the cost of the vehicle is low. Most states will charge you based on the value of the car and its year of manufacturing.
Depreciation Is Already Adjusted
Depreciation on a new vehicle will begin the moment you drive it off the lot. The value of your new car can go down by as much as 11% as you drive it away. With a used car, most of the depreciation has already occurred. Most of the depreciation happens during the first 2-3 years. So, it makes sense to buy a used car where the rate of depreciation is significantly lower.
Car dealerships that sell used cars inspect their pre-owned vehicles thoroughly to ensure that they are in pristine condition. They will make any repairs required and refurbish the vehicle to give you the best quality at a bargain.
Some Warranties May Still Be Valid
Some people sell the car while it is still under warranty. That means that you get warranty benefits at an extremely low price. You can also purchase extended warranties from manufacturers. The money saved by buying a used car can be used to purchase extended warranties. This means if you have any vehicle trouble, the company’s trained technicians will repair the vehicle for you at little to no cost.
Low Insurance Costs
Because of the low value of the vehicle, the insurance premium that you pay is quite low. If you are in an accident in a new car, the insurer will pay you based on the value of the car at the time of the accident.
New car owners pay the premium on the full price of their car and get the return only on its present value. With used cars, since most of the depreciation has already occurred, your premiums are fairly low, meaning you can claim most of the amount in case of an accident.
In Mint Condition
When many people think of used cars, the image in their mind is of a shabby vehicle with worn-out paint and busted up interiors. Wipe that image away. Used cars have undergone a makeover and look almost as good as new ones on the inside, outside, and under the hood.
As you can see, the number of advantages that come with buying a used will definitely make you think twice before splurging for that 2020 model. While your decision is based on several other factors, we recommend that you don’t rule our used cars without giving them some serious thought.