There’s no point wasting your savings on a brand new car. Not if a used car is more than good. In addition, a used car is much cheaper! Here are a few reasons why we think your money will be better spent buying a used car instead.
Options such as roof racks, anti-rust coatings and sunroofs affect the price of a used car not as much as the same options would cost on a new car.
2. Less depreciation means a better investment
Every new car loses value as soon as you take it out of the parking lot. What most people don’t know is that new cars continue to lose value at a rapid rate throughout the first year of life, sometimes by as much as 40%. A used car depreciates much more slowly after that first year, so you could argue that a used car is a much better investment than a new one.
3. Avoid hidden costs
Used cars do not burden you with hidden costs, such as shipping costs, which can occur when buying new cars. These fees, which can amount to a few hundred dollars, are added to the total list price of a new car.
4. They just cost a lot less!
As you already know, used cars are exponentially more affordable than buying a new vehicle. So if you want to save a few thousand dollars, look back a few years to find your favorite model.
5. Reduction of insurance rates
Another lesser known fact is that car insurance costs less per month for a used car than for a new one. Over a longer period, you save a considerable amount on car insurance!
6. Many used cars have a warranty.
One of the most common questions about buying a used car is about the warranty. Many used cars still have a factory warranty. Most people who lease a car return it after three years and still have 2 years left on the 5 year warranty. Certified Pre-Owned vehicles and most used cars have gone through a rigorous inspection and come with an extended warranty the moment you see them on the property.
Although with a used car you cannot choose colors, options and upholstery, like with a new car. You can shop the different years of a model that you prefer and you have the option of getting a model or style that is no longer in production.