Should I Buy a New or Used Car? 6 Reasons Buying a Used Car Makes Sense
Approximately 17.6 million cars are sold every year in the US.
That was a record number back in 2016, with a figure that was only set to rise!
Clearly, people all over the country are on the hunt for new vehicles throughout the year.
You can’t blame them, either. A car’s practical function is one thing, but there’s something extra special about getting behind the wheel of your shiny new whip. It’s about speed, status, and personality too!
Your ‘new’ car doesn’t have to be straight off the factory line though. In fact, anyone looking to buy a car has almost certainly asked themselves the following question:
‘Should I buy a new or used car?’
There are pros and cons to each option. However, we’re here to highlight the particular advantages of going second-hand. You might balk at the idea, but hear us out!
There’s a lot to look forward to. Want to learn more?
Keep reading to discover the top reasons for buying a used car.
1. Cut the Cost
Let’s face it, price is quite often a dictator of choice.
If you’re determined to buy a new car, then you have to be prepared to pay for the privilege. As everyone knows, brand new vehicles inevitably cost considerably more than older vehicles.
By contrast, buying second hand is a sure-fire way to save. Heck, even a one-year-old car will save you huge sums of cash. Of course, the older the car (and the more miles under its belt), the cheaper it’ll be.
It’s like anything else. Unused items go for a premium.
You wouldn’t go to a charity shop and expect to pay the full price for a second-hand set of pants! The same goes for cars. Buy used, save money–simple.
2. Cheaper Insurance and Registration
The financial incentives for buying used cars don’t stop at asking prices either.
You save money in other ways too.
Take insurance as a prime example. New cars have higher insurance premiums.
This makes total sense. After all, they’re worth more money! That means the insurance company has to fork out more in the case of an accident.
A second-hand car costs less. The effect? Cheaper premiums.
The same often goes for registering your vehicle too. Now, this isn’t always the case.
Some states have flat rates for registration. You pay the same, no matter what. Others will charge less to register a second-hand vehicle though.
It all adds up to more money left in your pocket.
3. Get a Better Model
That brand new BMW may be well out of budget.
But, boy, do you want to buy it anyway!
Consider getting a used version. As we’ve seen, they’re far cheaper.
You can get potentially buy the same model car for exponentially less money. Sure, someone will have put some miles on the clock before you. It may even be a few years old too.
In reality, though, a well-maintained second-hand car will look and feel as good as new. You might not even know the difference.
It’s a win-win. You get the car of your dreams, with a far-reduced price tag.
4. Get a Better Investment
What happens in the first year of buying a brand new car?
We’ll tell you:
It loses between 20 and 30% of its initial value, that’s what!
Imagine spending $30,000 on a new car. Thanks to these levels of depreciation, you could expect to sell it for as little as $21,000, just one year later! You’ve lost 9 grand in 12 months.
Would you ever risk that level of loss in any other investment?! It’s unlikely.
Clearly, as far as investments go, new cars are absolutely awful. The only time a car gains in value over time is for classic vehicles. These, in relative terms, are few and far between.
Most people can expect to lose huge sums of money on a new car.
Thankfully, the rate of depreciation slows as time goes by. That means second-hand vehicles are a better investment. You’re still likely to lose money. However, your losses won’t be as extreme.
5. Certified Pre-Owned
Used vehicles had a bad reputation back in the day.
Buying a second-hand car was full of risk. There were no guarantees to quality. You could pay, drive away, and break down a mile later. It’d be your problem, not the sellers!
Times have changed. You can expect a certified pre-owned program to most used cars. The warranty on the car is a nice reassurance to buyers. Of course, the coverage and robustness of the program can vary.
The truth remains, though, second-hand cars tend to come guaranteed. You know you’re buying something that’s fit for purpose.
Here are some more myths about used cars that we’ve debunked!
6. Greater Variety to Choose From
Head down to the local dealer.
What do you see?
Dozens and dozens of used cars, right? Buying second hand usually means you have a far greater level of variety to choose from. New cars don’t offer the same luxury.
After all, there are only a certain number of new cars made every year. That equates to less choice for you! Determined to find the perfect vehicle for your needs?
The added choice that used cars provide means this is a sensible way to go about it.
Should I Buy a New or Used Car? Final Thoughts
There you have it then: 6 top reasons to consider purchasing a second-hand car.
Millions of cars are bought and sold around the country every year.
Are you on the hunt for your next vehicle? The question “should I buy a new or used car” is likely to have crossed your mind. Of course, there are great benefits to buying a brand new set of wheels.
As we’ve seen, though, there is also a fair share of disadvantages! Second-hand cars tend to make a great alternative.
Hopefully, this post has highlighted a selection of the main benefits you’d enjoy!
Like this article? Thinking carefully about buying a quality used car? Click here to check out our full inventory today!
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