Some people still turn their noses up at buying a used car, and that’s a shame. Nowadays, a reputable used car dealership can get you an awesome deal on a great car that will last you just as long as a brand-new car – sometimes at pennies on the dollar.
Buying a high-quality used car is actually often a better investment than buying a car straight off the lot, or leasing a new car. Here are 7 reasons why.
Minimize Depreciation – And Get A Better Deal
Did you know that the value of a new car goes down 20% as soon as you drive it off the lot? And will decrease in value by 10% over the first year of ownership? That means that, if you purchase a brand-new car, you’re basically paying 30% more than you would be if you bought it used, one year later.
Buying a used car allows the initial owner of the vehicle to take that depreciation hit. If you find a great, two year old used car, you could end up paying less than half of its brand-new, dealership sticker price – and still easily get a decade of driving out of it.
Modern Vehicles Live Longer – And Are More Reliable
Used cars used to be a bit of a risky investment. In the mid-20th century, most cars weren’t built to last longer than 5-7 years – but today, almost every modern car can expect to reach a decade of use. In the US, for example, the average age of a vehicle on the road is 11.6 years – up from only 6.7 years in 1995.
Because of this, a five year old used car that’s in great shape can easily last you 10 or more years with careful maintenance – and it’ll cost you much less than a brand-new vehicle.
Great Quality Used Vehicles Are More Common Than Ever
Leasing is on the rise in both America and Canada. It’s estimated that 30% of all new car transactions are leases – a 10 percentage point rise in the last 5 years.
Many dealers resell these previously leased vehicles. They’re usually around 3 years old, in top notch condition, and have had their prices knocked down due to being previously owned, making them fantastic, reliable deals.
In addition, these cars are often still covered by manufacturer powertrain warranties and other warranties, giving you peace of mind.
The Internet Makes It Easy To Check On A Car’s Accident History
In the past, you basically had to take your used car dealership’s word for it that the car you were looking at hadn’t been catastrophically damaged and repaired. But not any more.
Armed with the vehicle’s VIN (Vehicle Identification Number) and internet-based tools like CarFax and Carproof, you can easily check out the history of each vehicle you’re interested in, and make sure that it hasn’t suffered any catastrophic damage under a previous owner.
You’ll Pay Much Less In Insurance Costs
Beyond factors like age, previous accidents, and other personal factors, car insurance is primarily based on vehicle value.
Because vehicle value plunges during the first few years of ownership, buying a used car and getting it insured will cost you much less in the long run that buying a new car.
Better Financing Terms
The interest rates on used vehicles are still usually a bit higher than on new vehicles. This is because used car dealerships don’t usually have to “sell” their cars as hard – they don’t have to lure you in with a 0% APR 5 year financing scheme.
Still, interest rates on used vehicles are very competitive, and you can usually negotiate low down payments and long repayment terms to get a fantastic deal on your financing for your used car.
You Can Get A “Better” Car!
Buying used allows you to buy a car that would normally be outside your price range. Think about a $40,000 Audi that was leased for 3 years, and is now being resold. It’s lost 30-35% of its value over those three years – despite being in great condition. Now, it’s being sold for $25,000.
There’s no way you could have afforded that Audi brand new, especially because of high insurance rates. But now, the value has sunk – even though the car itself is still in fantastic condition.
This allows you to get more car for your money – for the price of a brand new Honda Accord, you could have a certified pre-owned Audi with plenty of life left in it.
Come To Ride Time Today – Find Your Next Used Car
Ride Time is the absolute best used car dealership in Winnipeg, and we can ship cars all over Canada and the rest of the world with our specialized network of logistics companies.
Our fully-online used car selection allows you to get an inside look at a variety of high quality used cars so that you can find the perfect one for your needs – and we guarantee that we only sell well-maintained, regularly serviced, high-quality used cars.
We offer incredible financing deals – even to drivers with bad credit – and we can help you negotiate a fantastic rate on the previously-owned car of your dreams with our network of over 15 Canadian lenders.
So don’t buy a new car. Stretch your dollar with the fantastic cars on offer at Ride Time – your wallet will thank you for it.