Inexperienced motorists can often find themselves overlook the benefits of buying a used car. They think newer automatically means better, and that’s not really the case.
In the following article, we cover the 11 reasons you should absolutely consider buying used: how it can save you money, be safer, and give you more to choose from. Let’s begin!
Lower Purchase Price
Finding used cars for sale at an affordable price can be challenging when inflation is high. Even during times like the present, though, you’re still doing to save a lot of money versus buying new.
In fact, the latest reports available show that it’s about $15,000 cheaper to buy used cars, which had an average sale price of $25,463. Weigh that against the $40,000 average new car sale price, and it’s an incredible difference. Who couldn’t benefit from an extra $15,000 in their bank accounts?
Lower Sales Taxes When Applicable
Buying used cars will save you more than just the sale price as well. When you factor in the states that charge sales taxes on the purchase of automobiles, the difference is significant.
Let’s use the $40,000 new car example. (Again, these are averages.) That new car with a 6 percent sales tax is going to cost you an extra $2,400 in taxes.
Contrast with a $25,000 used car. Assuming the same percentage of sales tax, you pay only $1,500. That’s a $900 difference on top of the $15,000 you’ve already saved buying used instead of new.
Used Cars Do Not Lose Value As Quickly
One of the first car buying tips you’re likely to hear when picking out a ride is that they lose value the minute you drive them off the lot. That’s true.
Car depreciation is steep and quick. By the time the car hits the used sales market, most of the depreciation has already occurred. That means fewer concerns about how the car is put to use.
Warranty Additions Are More Affordable
One important factor to consider about how to buy a car is the warranty still on the vehicle or the types of warranties that are available to you. Warranties add peace of mind to the buyer, knowing that if something does go wrong, the repairs will either be fully or partially covered.
There are generally two types of warranties: one from the dealer and the other from the manufacturer. Manufacturer warranties tend to go further in what they’ll cover. If the warranty has expired at the time of purchase, look into buying the manufacturer’s extended warranty, which can net you several thousand more miles of protection.
You Save On Insurance
Another of the benefits of used cars is that car insurance doesn’t run as high as a new car in most cases. You can confirm it on your own before the purchase of the vehicle to make sure.
As you’re doing a cost-benefit analysis on which type of vehicle to buy, you’ll want to factor in the cost over time. If you plan to be in your vehicle for 10 years, project the difference between the two annually first and then multiply that by the expected time of ownership.
Add it to the $15,900 you’re already saving through purchase price and taxes. You can see how it starts to add up.
Reduced Registration Fees
One thing Wisconsin-based Gates Preowned Used Cars points out that most car buyers don’t think about at the time of their purchase is what it will cost to keep the car registered each year. Nationwide, State Departments of Motor Vehicles charge a nominal fee to ensure registration is kept up to date. Even though it won’t break the bank, the cost runs lower on used vehicles.
More Affordable Luxury
If luxury is your thing, you’ll be drawn to the used car market as well. That’s because you can buy a lot more car for the money when you’re buying used.
A new luxury sedan, for example, could run anywhere from $50,000-$100,000. Just using the average sale price numbers above, you could get the same style of car for 30-35 percent less.
More to Choose From Overall
Each year, the major car manufacturers roll out their new car inventory with a handful of new models. That’s a limited pool from which to buy.
Compare that to the used car market. This consists of several years of quality automobiles from these same manufacturers, including some discontinued that are nevertheless high-quality cars with long life expectancies ahead of them.
Used Cars Still Have a Lot of Life Left
Life expectancy is a big thing when buying any car. Most vehicles lose all the value they’re going to have on the aftermarket in their first 10 years. But a well-kept used car can keep going long after the depreciation is complete.
The longer you can go without having to drop several thousand dollars on a car purchase, the more you’ll save over time. With talk of cars that can actually hit one million miles on the odometer, that should be encouraging.
More Knowledge and Data Available
Thanks to automobile ownership reports, you can know the complete history of the automobile you’re about to buy. New cars do not have that advantage. You can only hope the vehicle was built well by the manufacturer.
Buying from a reputable used car dealership, on the other hand, makes it easy to get information on repairs performed, recalls issued, and the average lifespan.
Recall Issues Are Already Known
We mentioned recalls in No. 10. That’s an important issue because no car is immune from them, and used vehicles are open books when it comes to knowing the work that has been (or needs to be) performed.
With new cars, recalls may not be known until defective cases build up. That’s not as encouraging if you’re an early adopter of a new make/model.
Learn the Benefits of Buying a Used Car and Never Go Back to New
Once you fully understand the benefits of buying a used car, it’s harder to justify buying a new one. They run just as well (in some cases better), have a more proven track record, and save you money on multiple fronts. For more car-buying or automotive tips, make sure you check out some of our related posts!
