Between insurance, monthly payments, taxes, maintenance costs, and fuel, owning a brand new vehicle can be quite an expensive proposition. On top of that, many new vehicles depreciate by as much as thirty percent by their first birthday, and another ten percent over the next two years. Savvy buyers often score huge discounts by purchasing a used vehicle. Also, going the used car route not only saves money up front, it can save thousands of dollars over the life of your ownership, as well. In all, there are many benefits to purchasing a used car, truck, or SUV as opposed to new, and here are five of the best:
Benefit Number One – Buying a Used Vehicle Saves Money
Along with saving big on the sticker price, buying a used vehicle saves money in a variety of ways. A lower initial price means lower taxes on your purchase. Depending on the purchase price and location of the vehicle, the savings could easily be in the thousands. Also, dealerships typically base many of their fees on the vehicle’s sale price. While not as imposing as taxes, dealer fees can also add up quickly. The same goes for insurance. Insurance companies base their rates on the replacement cost of the vehicle that they insure. So it stands to reason that a car that sells for $60,000, for instance, will have higher premiums than one that sells for $25,000.
Benefit Number Two – Buying a Used Vehicle Leads to Less Depreciation
Many new vehicles lose as much as 20 percent of their initial sticker price the minute they leave the lot, and another ten percent over the next year. Some three-year-old vehicles sell for as little as half of their original MSRP. On the flip side, between the ages of three years old and six years old, some vehicles actually retain almost 90 percent of their value. So, while buying new offers the pleasure of owning a vehicle fresh off the assembly line, first owners will bear the brunt of depreciation.
Benefit Number Three – Buying a Used Vehicle Offers More Bang for the Buck
Car buyers often find that the vehicle they really want, or need, is out of reach financially. Some drivers enjoy the higher level of amenities and driving pleasure that comes with owning a high-end luxury vehicle, but don’t have anywhere near the budget. Vehicles that were not in their budget when brand new may be easily afforded when even just lightly used. Also, someone with a family of six, for example, may need a large SUV. They may have no choice but to buy it pre-owned, as full-sized SUVs can be quite expensive on the new car lot. Pre-owned vehicles typically offer much more “bang for the buck.”
Benefit Number Four – The Kinks Have Been Worked Out
Thanks to higher initial quality, many modern vehicles easily reach 100,000 miles without skipping a beat. Drivers no longer need to worry about reliability as the odometer reaches the six digit figure. Some manufacturers even offer 10-year or 1000,000- mile warranties. A well-maintained vehicle can provide the same driving pleasure for the second and even the third owner, as it did for the first. An accident-free, pre-owned vehicle that’s been detailed offers an almost identical ownership experience to its factory-fresh counterpart. Also, by their third or fourth year, most used vehicles have had any kinks with the model year worked out. Any recalls, or issues – large or small – have been taken care of, for free, by the dealer or the manufacturer.
Benefit Number Five – It’s Easier to Find the Right Vehicle
The internet makes finding the perfect new vehicle considerably easier than in days gone by. Shoppers can read reviews, compare features and prices between different manufacturers, and ultimately decide on the perfect choice for their budget and lifestyle. They settle on one vehicle, and one vehicle only. But, used car buyers have the subtle advantage of not feeling locked into any particular brand or model. Used car buyers tend to look at a wider variety of vehicles and get a better feel of what works for them.