Whether you are a first time car buyer or a seasoned veteran, there is always the difficult decision of deciding whether to go with a new or used vehicle for your next purchase. New cars have the latest in style, 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 do an overview of 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 on that. Once you buy a new car and drive it around the block, it is no longer new and that value drops quickly. According to Consumer Reports, your new car on average will be worth 54% of the original purchase after just 3 years – that hurts!
The average cost of a used car is predictably well below that of a new car model, and that’s not the only space to save. Logically, you’ll pay less tax for a lower-priced car, and it’s often more affordable to insure them, too. However, you should take note of the vehicle’s mileage because the distance traveled and the remaining warranty will likely affect your maintenance costs.
2. Financing rates and conditions
With low manufacturer financing rates and longer terms, 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 Vehicle (CPO) programs has really narrowed the gap. Not only do banks offer aggressively low rates for used cars, but certified pre-owned cars offer even lower rates plus the added bonus of additional warranty coverage and comprehensive vehicle inspections. The new car advantage is really starting to fade with the exceptional used car financing options available.
3. Vehicle history reports
Maybe your question about buying a used car is that you just don’t know where you’ve been or what you’re getting and that’s understandable, but with transparent reports using tools like CarProof, you get a pretty good idea of what you’re dealing with. Vehicle history reports may not capture everything, but you will generally get essential information such as
The number of previous owners
Any accident or damage history with details.
Previous registration status (personal, lease, taxi, rental, etc.)
Mileage validation and maintenance records
If you’re thinking that buying a used car might be a risk because it won’t last long, then you should do some research. According to various studies, the average vehicle on the road today is over 10 years old and that number continues to rise as automakers continue to improve their lineups. Modern cars, trucks, and SUVs simply have a longer lifespan than they used to and that’s great news if you’re looking for a used vehicle on the market.
There are many things that I like about the prospect of buying a new car that no one else has driven yet, but there is no question that used vehicles have a better value. Now that you’ve read our 4 smart reasons to buy a used car, what will your next purchase be?