Whether you’re a first-time car buyer or a seasoned veteran, there’s always the tough decision of whether to go for a new or used vehicle for your next purchase. New cars have the latest styling, tech features, low interest rates, and that beloved new car smell, but are they really the best option for you and your budget? We’re going to brush up on some used car knowledge and give you 4 great reasons to buy your next used car.
1. They are less expensive
Let’s get the obvious out of the way: In most cases, you’ll save money to buy your used car, and probably quite a bit of money. Once you buy a new car and take it around the block, it’s not new anymore and that value drops rapidly. According to Consumer Reports, your new car will be worth on average 54% of the original purchase after just 3 years, that hurts!
Unsurprisingly, the average cost of a used car is well below that of a new model car, and that’s not the only room for savings. Understandably, you’ll pay less in tax on a lower-priced car, and it’s often cheaper to insure, too. However, you should take note of the vehicle’s mileage because the distance traveled and the remaining warranty will likely affect your maintenance expenses.
2. Financing rates and terms
With low manufacturer financing rates and longer terms available, dealerships can show you some very attractive monthly payments on a new car, but don’t forget to do the math. Even a lower rate can really add up over a 7 or 8 year financing term and the growth of Certified Pre-Owned (CPO) programs has really narrowed the gap. Banks not only offer aggressively low rates for used cars, Certified Pre-Owned cars offer even lower rates, plus the added bonus of additional warranty coverage and extensive vehicle inspections. The new car advantage is really starting to fade with exceptional used car financing options available.
3. Vehicle History Reports
Maybe your hesitation about buying a used car is that you just don’t know where you’ve been or what you’re buying and that’s understandable, but with transparent reporting using tools like CarProof, you have a pretty good idea of what you’re buying. Dealing with Vehicle History Reports may not be all-encompassing, but you’ll usually get essential information like
The number of previous owners
Any accident or damage history with details
Previous registration status (Personal, Leasing, Taxi, Rental, etc.)
Mileage validation and maintenance records
4. Reliability
If you’re thinking that it might be a risk to buy a used car because it won’t last long, then you need to do some research. According to several studies, the average vehicle on the road today is over 10 years old, and those numbers continue to rise as automakers continue to improve their lineups. Modern cars, trucks, and SUVs simply have a longer lifespan than ever before, and that’s great news if you’re in the market for a used vehicle.
There’s a lot to like about the prospect of buying a new car that no one else has driven yet, but there’s no question that used vehicles are better value. Now that you’ve read our 4 Smart Reasons to Buy a Used Car, what’s your next purchase?
