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.
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:
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.
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.
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.
Many dealerships offer warranties on used cars. It can make the whole used car buying experience a little more worry-free.
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.
If you’re convinced, and your next car is going to be a used vehicle, there are some essential things to look for.
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.