Benefits of Buying a Used Car Instead of a New Car
While some people dream of buying a new car, opting for a used model instead makes a great deal of sense, especially financially. Between the money you will save, the peace of mind you get from not having to worry about totaling a new car, and the range of options you have to choose from, buying a used car will deliver plenty of benefits.
The most obvious benefit of buying a used car instead of going with that shiny new model is the money you save. In fact, this is the main reason most people who purchase a used vehicle do so. Just at the time of the purchase, you will save a few thousand dollars right away. Don’t forget that because of the lower purchase price of a used car, you will also save on taxes as well as insurance.
The real savings with a used car, however, come from its depreciation. New cars depreciate in value much more in their first year than in later years, meaning that just by choosing a vehicle that is a year old, you can save a significant amount. Some estimates say that after just three years, the average new car only maintains about 54 percent of its original value! (Of course, some do maintain their value better than this.) In fact, just driving the car off the dealership lowers its value.
With a new car, you can never guarantee how reliable it will be. While most brands and models maintain similar reliability ratings throughout their generations, there are always exceptions to the rule. With a used car, however, you can research that particular model year to confirm that it is reliable. It also helps that current vehicles regularly last for over 10 or 11 years, meaning even a used car should last you several years or more.
Because a used car costs less, it is frequently easier to get an automotive loan for a used vehicle than a new one. This is particularly good news for those with poor credit or even no credit. While you may struggle to find an auto loan for a new car without an exorbitant interest rate, this should be feasible with a used vehicle. This is especially true if you get it from a dealership specializing in serving those concerned about their credit.
Get More Features for Your Money
Another advantage related to the lower price of used cars is the amount you can get for the same price. Essentially, by buying a used car instead of a new one, you get more bang for your buck. You will spend the same amount but be able to get more features, such as leather upholstery, an upgraded stereo system, or those advanced safety features you want. In many cases, you would only be able to afford the entry-level trim for a particular model as new, but you can get the top trim level used and still spend less than you would on the new vehicle.