When you’re picking out a car to replace your own, then you want to make sure that you get one that suits all of your needs and perhaps even brings a little dash of excitement and style to your life on the road. However, that doesn’t mean that you have to go for the newest and flashiest models. In fact, if you’re thinking about cost, practicality, and long-term savings, then going for a used vehicle may well be the smartest option after all. Here are a few reasons why that’s the case.
The Cost Savings Are Nothing To Sniff At
Perhaps the biggest and most obvious reason to use with your car purchase is how much you’re going to save right off the bat. Given that new cars tend to depreciate very quickly, losing 20% of their value as soon as you take them off the lot and 50% within the first few years, you could skip absorbing the cost of the depreciation and buy a car that’s already taken that major hit. You can often afford a higher-end model with more features for the same price as a new, base-level version. Used vehicles typically have lower insurance costs as well, saving you money month to month. When it comes to immediate savings, the gap is pretty huge between a new car and a car that’s only seen one year of use.
Your Car Depreciates At A Lower Rate
If you’re someone who likes to maintain the value of their car, and make sure that they’re able to get nearly as much as they paid for when it comes time to sell it, then used cars offer a big advantage there, as well. Depreciation is a hidden cost of car ownership, and it hits new vehicles the hardest. When you buy used, especially a vehicle that’s two to four years old, you avoid the steepest drop in value. Naturally, all vehicles still depreciate over time, so you can’t ensure it maintains all of its value, but you can make sure that you miss the biggest drop in value.
More Vehicle For Your Budget
If you have a preset budget for the car you buy, then you should compare how far that budget can take you with a new car, versus buying a pre-owned car. You might find that your options with a used dealership are significantly expanded. With a fixed budget, buying new might limit you to compact or lower-trim models with fewer features. But that same amount can get you a well-maintained used car with leather seats, a premium audio system, or advanced safety technology. Whether you want to opt for a larger vehicle, one with more horsepower, or even something that’s certified pre-owned with extra inspections and warranties, used cars allow you to take your budget further.
You Can Get Real Peace Of Mind
Now, it’s important to keep in mind that buying used is not the same in every single instance. Some drivers worry about the reliability of buying a used car, and, often, those buyers are imagining buying off the private market. It’s not always easy to verify the reliability or even the history of a car on the private market, but with trustworthy dealers, you have a lot less to worry about. Many of them have certified pre-owned cars that, by definition, have to meet certain manufacturer standards. Other dealerships offer extensive warranties, so that if there are any unexpected issues beyond general wear and tear, you don’t have to pay out the nose for them.
Lower Insurance And Registration Costs
The savings with a used car go well beyond taking it off the lot. The overall cost of ownership can be a good deal lower, as well. For one, insurance premiums tend to be based on the value of the car, which means that used cars (whose value is naturally lower) tend to cost a good deal less to insure. Depending on where you are, you may also find that registration fees are based on vehicle age or purchase price, so going used can save you money there. This can end up with hundreds, if not thousands, saved each year in ownership costs. Over the life of a vehicle, that adds up to extensive savings.
You Can Avoid Hidden Fees
When you’re buying a car with a dealer, there is always some degree of risk of some hidden costs that you should look out for, but these tend to apply much more to new cars rather than used ones, including things like destination charges, dealer prep fees, advertising fees, and overpriced add-ons. With used vehicles, many of these fees are reduced or eliminated entirely. Since new car buyers tend to have a bigger budget when they’re making their purchase, dealers also tend to be more eager to try and get them to buy unnecessary upgrades or packages that they may not really want or benefit from. Used dealerships tend to be a little more straightforward, but it’s important to choose one with a focus on transparent sales.
You Could Buy A More Sustainable Car
Aside from being good for your bottom line, buying a used car could be good for the planet, as well. Manufacturing new vehicles consumes massive amounts of energy and raw materials, including steel, plastics, and rare metals. By purchasing a used car, you’re extending the life of an existing vehicle and reducing the environmental impact associated with production and shipping. Of course, there is also the fact that buying used can mean that you can pick up a hybrid or an EV at a lower price, giving you the opportunity to get much more green with your driving habits but, either way, you’re making a more eco-conscious choice.
A new car is an exciting thing, but a used car can offer a lot more advantages than you might think, helping you get a lot more out of your budget. Keep the tips above in mind and opt for a used dealership rather than going brand new.
