If you’re in the market to buy a car, there’s a good chance buying used can save you money. While there are a lot of factors to consider when deciding to buy a new or used car, here’s a few reasons to think about going used:
1) Used cars don’t depreciate as much as new cars.
Everyone knows that new cars depreciate thousands of dollars when you drive them off the lot. Used cars also depreciate, but usually they do so much more slowly and in much smaller amounts.
2) Used cars are often half the cost of new cars.
Most new cars lose 25% of their value the first day of ownership, and 40-50% within 2 years of being purchased. In other words, a 2 year old used car/truck/SUV is HALF the cost of a brand new one. Usually, these 2 year old vehicles are still under warranty and they have relatively low miles.
3) You can often afford a nicer used car than you could buy new.
If your budget doesn’t allow you to buy the new car of your dreams, switching to a used vehicle allows you to get more features and luxury (often for a lower price).
4) Used cars can be purchased with warranties similar to new cars.
If you’re biggest concern is buying a reliable car, remember that you can often buy a warranty on a used car that will meet or exceed the standard new car warranty.
5) Used cars give you more options in the future.
Often times, when you buy a new car you find yourself locked into a vehicle for a few years. Perhaps it’s just a three year lease, or maybe you decided to take the 0% financing for the next 6 years. In either case, it’s difficult or impossible to trade the vehicle in until your financing or lease is over. With a used car, it is much easier to trade-in and change vehicles.
Whatever you decide, make sure you always follow our basic advice. Do your research, get quotes online, and take your time.