9 Advantages of Buying a Used Car Instead of New
If it is time to replace your car, you shouldn’t assume that you have to get a new car. All you need is a car that is new to you – and that can include used. Here are 9 advantages of buying a used car instead of a new car.
It Is Cheaper
A used car is almost always cheaper than a new car. There are exceptions like classic cars, but these are rare. In most cases, a used car that is several years old costs far less than a new car, though it still has years of life left. On the other hand, paying cash for a five- to ten-year-old car in good condition is a much better than going into debt to buy a new car or leasing a vehicle.
Someone Else Pays the Depreciation
There is a saying that the car loses several thousand dollars when you drive it off the lot. While that’s a little extreme, the reality is that the car depreciates significantly after it is officially “used”. The greatest depreciation is in the first year. It is worth 20% less. More importantly, this occurs though the car may not have been driven very much. This makes used cars cheaper than new ones. But it also means that you won’t lose as much money on depreciation after you’ve driven it for a while, whether you sell it or trade it in later.
You’ll Pay Less to Insure It
Insurance rates are based on the price to repair and replace a vehicle. Both of these are lower for used cars, and this is why you pay less to insure a used car over a new car by the same manufacturer.
You’re Less Likely to Be Hit with Surprise Charges When You Buy It
When you’re buying a used car, the sticker price is typically what you pay. You may pay additional fees at your discretion like an extended warranty, a car delivery fee or applicable registration fees. But you’re less likely to be hit with an assortment of unnecessary fees as they try to get as much money as possible out of you. For example, additional equipment like roof racks and rust-proof coatings are already part of the purchase price instead of something they ask you to pay more for.
You Have Greater Selection
When you’re buying used, you have far more selection than if you limit yourself to new cars. Models get discontinued. They may stop making a station wagon version of your favorite SUV or no longer make third row seating an option.
You May Be Able to Buy More Car for the Same Price
Let’s suppose you have a set budget. If you buy a used car, you may be able to buy one with the premium package or used Fords with additional power. For example, you could buy a used truck with a V8 engine and tow bar instead of a new but basic V6. Or you may be able to afford a used luxury car instead of a new mid-market car.
You Have Much More Information
A new car may make headlines because of new features, but you don’t know how reliable these devices are. Furthermore, new car models don’t have a reliability history. Used cars do. You can learn what issues occur with that make, model and model year from various publications. Then you can have the car inspected for these issues or verify that the problem has been fixed.
You Don’t Have to Give Up the Warranty
You often get a car warranty from the car lot, even when you’re buying it used. And depending on the make and model, the manufacturer’s warranty may still be in effect.
It Is Better for the Environment
Buying used helps to conserve resources relative to buying new. Roughly a quarter of the carbon dioxide produced by vehicles occurs during its manufacture and initial shipment. By continuing to use the car, you’re making use of the acid in the batteries and metal in the car. In short, you’re preventing the creation of toxic waste and saving energy even if the car is not quite as fuel efficient as the newest models.