What can be better than that new car smell? Not having the new car finance bill that comes every month. Sure, having a new car is nice, but having a slightly-used car is even better. When you buy a new car, you lose 20% of its equity just by driving it off the car lot — but you are still paying full price. There are many advantages to buying used over new cars.
If you do your research and are willing to wait for the right used car to become available, buying new just doesn’t make good “cents.” A used car will cost you a fraction of the price, and it won’t put you in debt or hurt your monthly budget.
As stated above, when you buy a new car, you lose 20% of its value by just driving it out of the dealership lot. That is a whole lot of money that you won’t ever get back. Statistics show that the average car will lose about 10% of its value within the first year you drive it. That means that after twelve months, you have lost 30% of the money you spent on your new car.
However, if you get a car that is two to three years old, then the depreciation is very slow. In fact, many used car buyers can buy their car, drive it for a year or two, and sell it for almost exactly for the purchase price. If you choose the right type of car by doing your research, the depreciation on your used car can be next to nothing.
Lower insurance rates
The car insurance rates for a new car are going to be significantly higher than for a used car. The reason is that a used car is “worth less,” according to the way insurance companies estimate the cost of replacement and repairs. If you do buy new, you will still be paying insurance on the depreciation that you lose that first year — and for a long time. Buying used is going to cost you much less, and you really won’t be sacrificing anything.
Lower registration fees
When you buy a used car, it will cost less to register the car too. The registration price that you pay is based on the amount that you paid for the car. If you pay for a new car, then you are going to be paying significantly more than if you purchase a car that is two to three years older. And a slightly older car is probably not that much different than the latest year’s model.
You get more of what you want
When you buy a used car, you can get more upgrades for less money than if you buy new. All the money that you would have spent buying a new car can be used to get a car that is in a higher class and has more features and upgrades and which is only slightly older. Instead of getting the lower-end model of a new car, you can get a used car that is the manufacturer’s top-end model for about the same price and get everything that you want.
If you can’t find a used car that has all the upgrades you want built in, you can use the money you save from buying used to install aftermarket upgrades and probably still come out ahead. For most car manufacturers very little about the design changes from one year to the next. This means you are likely to be the only one who will know that you bought used instead of new.
Sometimes people shy away from purchasing used cars because they worry that they are just buying someone else’s problem. If you are going to buy used instead of new, make sure to purchase a used car from a dealership like Ride Time — that way you have someone to turn to if you should find any problems with the car. In the end, buying used just makes better sense than financing a new car. Not only will it save you monthly, but you will also pay less for the car over time, lose less equity, and have all the upgrades you want instead of settling for a new lower-end model. Come see us at Ride Time so we can help you get into the car of your dreams