When it comes to car shopping, you may be tempted to go for the shiny, newer models first. However, you will miss out on substantial benefits if you overlook the advantages of buying a used car. If you’re in the market for a new vehicle, here are seven advantages of buying a used vehicle over a new one.
1. Cost
One of the most obvious advantages of purchasing a used car is the upfront cost savings. A used car with a previous owner will usually cost less than a brand-new model. This can leave more room in your budget and potentially help you afford higher-quality vehicles with extra features.
2. Less Depreciation
Did you know a new car can lose up to 20% of its value from the moment you drive it off the lot? From there, it will continue to depreciate at a high rate during your first year of owning the vehicle. In contrast, used cars have already undergone much of this depreciation, which means you can retain more of your vehicle’s resale value if you purchase it used.
3. Lower Insurance Rates
In general, owning a car is expensive. Not only do you have to secure the funds to purchase a car in the first place but you are also legally obligated to pay for car insurance after the fact. With that said, insurance premiums for used cars are typically lower than those for new cars. Because the overall value of a used car is lower than a new car, your insurance premium will be lower to reflect the decreased risk of financial loss in case of an accident or theft. By opting to buy a used vehicle, you can save a significant amount of money on your monthly insurance premiums over the lifetime of your vehicle.
4. Lower Taxes and Fees
Keep in mind that you will be paying more than the sticker price when buying any car, even if you are a master negotiator. Most states also require additional registration fees and taxes before you can legally drive your car on public streets. Usually, older vehicles will have lower registration fees compared to cars that are brand new.
5. Less Expensive Repairs
If you have issues with your brand-new vehicle, it might need brand-new replacement parts, which will be more expensive overall. In comparison, paying for repairs on an older vehicle may be easier on your wallet. Additionally, recalls on failing parts happen more frequently for brand-new cars, whereas parts for used cars tend to be more established.
6. Wider Selection
The used car market offers a wide variety of options, from different makes and models to varying years and trim levels. This is especially true if you have your heart set on a trim or body style that’s no longer available in newer models. On the other hand, shopping for a new car with a set budget will only limit you to a much smaller selection of vehicles.
7. Reliability
Don’t trick yourself into thinking new cars are more reliable. These days, you can buy a certified pre-owned vehicle, which means the vehicle has been inspected for safety and performance. Most dealerships will also offer warranties for their certified pre-owned vehicles, making it possible to enjoy the perks of a “new” car without having to pay the additional cost.
