While buying the latest and greatest thing is often urged by society and advertisers, there are actually many reasons why buying a used car may be an excellent money-saving investment. Beyond the common knowledge that your new car depreciates markedly the minute you drive off the lot, a multitude of additional reasons exist. The next time you’re in the market for a car, take a few minutes to weigh the pros and cons of a new versus used vehicle. And ask yourself if you can find a car you love, even if it’s not hot off the assembly line. Chances are you can. Plus, here are some cost-saving benefits of buying a used car to add to your list.
Improved Reliability
Ten years ago when you bought a used vehicle you had to be wary about rust and aging exhaust systems. Modern materials and innovative technology has improved the longevity of many cars, trucks and SUVs. It’s rare to need a major overhaul in the 100,000 mile plus category, and many vehicles are inching their way toward and over 200,000 miles without a lot of health issues. The key is to look for something that was made in the last five years. When you settle on a few makes and models you like, research the following:
- Vehicle history – Carfax is the most popular way to do this. AutoCheck is another option. Recalls are another think to check up on.
- Consumer reviews – Look at what people are saying about a specific vehicle.
- Expert reviews – Car industry professionals review new models when they come out—find their reviews and see what the consensus was.
- Cost to repair – Getting a part for an Audi is probably going to cost you a lot more than a part for a Mazda. Factor repair pricing into your purchase.
- Value – It never hurts to check what people are paying for a model/make. It’s also a great way to see if the car you’re interested in is holding its value. You can look at top sought after used vehicles for ideas of what to purchase as well.
Reduced Insurance Costs
You may have a little sticker shock when you realize the cost to insure a new vehicle. One excellent bonus of buying used is more reasonable insurance rates.
Registration Fees
The cost of registration fees depends on the price of the vehicle. Therefore, if you buy a new higher-priced car, your registration fees will cost more too.
More for your Money
Have you always dreamed about having a sunroof, Bose speaker or backup camera? Maybe you really want in-dash navigation or leather heated seats. The majority of people can’t afford a new car with luxury features. Those features are far more attainable when you buy used. List some of your dream options and make them a reality. It’s amazing the number of people that barely use their luxury vehicles and then trade them in. It makes finding a nice used car in excellent condition pretty easy. Better yet, manufacturers aren’t redesigning their vehicles every year—so chances are you can find an older car with the same “latest” design.
You can Still Have Peace of Mind
Many dealerships offer warranties on used cars. It can make the whole used car buying experience a little more worry-free.
Depreciation
You can’t really make a list of the benefits of buying a used vehicle without reiterating just how much and how quickly a new car depreciates. Experts say cars lose up to 10% of their value the minute you drive off the lot. In the first year, that depreciation can reach up to 20% of lost value. It kind of takes the thrill out of that new car smell.
What to Look for in a Used Vehicle
If you’re convinced, and your next car is going to be a used vehicle, there are some essential things to look for.
- Low miles
- As many extra features as possible
- A vehicle in clean, very good condition
- Decent fuel economy
- Neutral colors (When it comes to cars, orange is not the new black)
It’s true—there is a lot of allure to new vehicles. All of the bells and whistles fade quickly though. If you’re on the market for your next vehicle, take a good, hard look at investing in a used one. Not only will it reap financial rewards, you’ll probably be able to get into a car that gives you a little bit more for your money.
