Are you looking to buy a new car, but just can’t seem to justify the price of a new-new car? Used cars are a great option for anyone wanting to change their ride to something newer, or more appropriate for their lifestyle. But not all used cars are the same. You’ll need to do your homework especially when it comes to things like insurance and depreciation. There are plenty of benefits out there, and you can find the main one right here. Let’s take a closer look at why you should buy a used car and what to look out for.
1. Get More Value for Your Money
When it comes to buying a used car, your money tends to go a lot further. You can get a lot more for quite a bit less than you would if you were buying new. This means that you can get a great used Mazda at a fraction of the original. If you have your sights set on something more luxurious with a ton of features, it could be more beneficial to your budget to look at a model that is 2 or 3 years older that still has the features you like. Carmakers aren’t redesigning models for each year, so you could get something that is a bit older, but basically the same.
2. Less Depreciation
Depreciation is an unpleasant reality and quite unavoidable when it comes to cars. A new car depreciates by 10% the second it leaves the lot and all in, it means that you can lose up to 40% of your brand-new car’s value in the first year. Used cars tend to depreciate a lot slower. This is because it has already gone through its major depreciation phase. This also means that you’ll have a much better loan-to-value ratio, making it more stable.
3. Lower Dealership Fees
Depending on who you buy from, you can expect to pay different dealership fees. Some places are more expensive than others, but you can be sure that your dealership fees will be a lot less anywhere you go for a used vehicle. This is especially true when it comes to the amount of sales tax you have to pay. There are other fees that come with buying a used car, so be sure to ask the dealership about these. You’ll incur registration fees, title tax, and documentation fees.
4. Lower Insurance Costs
As you know, the cost of insurance varies based on things like your age, credit score, driving history, the area you live in, where your car is parked, and the mileage. Typically, insurance for a used car is quite a bit lower than what you can expect to pay for a new car. One of the biggest factors used to determine the cost of your car insurance is the retail value of your car. It follows logically that a used car, with less value than a newer one, will mean lower insurance payments. Be sure to compare rates and get a couple of quotes online for free. Be sure to get this all sorted before you drive away from the dealership.
5. Peace of Mind
In the past, driving a used car came with a bit of a negative connotation and carried a stigma that led many drivers to see it as a risk. But today we know that this is not the case. The ease of access and availability of vehicle history reports has made it a lot less risky to buy a preowned vehicle. You can see all sorts of detail about the car. This includes things like its accident history, mileage, title status, and so much more.
Before buying a car take advantage of this. The car’s VIN, known as the vehicle identification number, is attached to these reports and gives you access to an array of valuable information. It can verify things like the mileage and if the vehicle was ever written off by an insurance company in the past. Some of these issues could lead to higher insurance costs, as well as other hidden costs that people are trying to conceal. Having access to this information could give you greater peace of mind, knowing exactly what your car has been through.
6. The Certified Pre-Owned Option
If you don’t have access to the VIN, or you don’t trust the information online, you can always look for a certified pre-owned dealership. Certified pre-owned options come with a trusted endorsement from the dealership. This way you still save money, but you will have confidence in the reliability of your new car. Certified pre-owned, or CPOs, are cars that have gone through rigorous testing and met the manufacturer’s standards. They carry a guarantee against certain defects, almost like a new car’s warranty.
Buying a used car doesn’t have to be complicated, or scary. As long as you do your homework and find a car that has a great track record, you will have a great new car.
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