A car is a huge purchase, and new cars are just getting more and more expensive. The sticker price of a new car is just one of the reasons to consider buying a used vehicle, though. There are many other reasons that buying used makes more sense than buying new. Here are some reasons to make your next vehicle purchase a used one.
1. The Sticker Price
You can save thousands of dollars when you buy a used car. According to recent data, you can save over $13,000 by choosing used over new. The biggest reason for this is depreciation. New cars depreciate quickly over the first five years, with the majority of it occurring in the first two years. While some makes hold their value better than others, the majority of new cars will lose 30% of their value in just the first year.
2. The Availability of Certified Pre-Owned Cars
Almost every automaker offers some kind of certified pre-owned program to help buyers feel more secure when they buy a used vehicle. A manufacturer pre-owned certified vehicle usually includes some kind of warranty based on mileage or time along with extras such as roadside assistance. Dealerships also offer certified programs too. You can often purchase a warranty on a used vehicle for extra peace of mind.
3. You Get More for Your Money
If you go into sticker shock when looking at just the entry-level trims on new vehicles, consider what you can get in a used vehicle for the same amount of money or even less. Your budget will get you much more in the way of extras if you look at cars that are a few years old. The top-level trim for a three-year-old vehicle with low miles is a much better deal than the base trim of a new car.
4. Reduced Cost of Insurance and Registration
The value of the car determines the cost of insurance. Since a used car has less value than a brand-new car, it will cost less to insure it. Once a vehicle is older, you can even drop some of the coverage to save even more money. Collision and theft insurance is not always necessary for older vehicles.
Just like with car insurance, the cost of registration is based on the transaction price. The less you pay for a car, the less you’ll have to pay to register it.
5. The Variety
There are thousands of different makes and models of used vehicles available. Car manufacturers discontinue trims every year and discontinue models regularly. These become available as used vehicles that you can no longer find new. For example, many carmakers are switching to crossover SUVs and limit the number of sedans that they produce. If you look for a used sedan, you’ll have tons of options available.
These are just a few of the reasons that it is a good idea to buy a used vehicle instead of new. The initial costs are lower, it is cheaper to insure a used car, and you’ll have lots of options.
Image via RathAuto.com
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