When you think of used cars or used trucks you might picture a beat up old banger that probably won’t last you more than a few months. While there are definitely cars like that out there, buying a used vehicle does not have to be like that. There are some very nice used vehicles that are available for sale whether in used car dealerships or even being sold privately. Here are just a few advantages of buying a used vehicle.
Price
While being able to say that you are the only person that has every owned your car, you are going to have to pay a pretty penny for those bragging rights. New cars tend to cost around $20,000 more than used vehicles. Is it really worth it to pay what could be a house down payment just to get that new car smell and zero mileage? The new car smell goes away and the zero mileage builds up far quicker than you will be paying off that extra $20,000 on top of whatever the car actually costs. You are basically paying for the bragging rights because even used cars are kept at a high standard and are regular inspected and maintained while they are at the dealership.
Interest
This one is a tricky one because interest rates are a little lower on new cars. Probably to make them seem cheaper. A new car averages a four percent interest rate while a used car is at almost five percent. However, because of the higher price and all the fees and other things included in buying a new car, you will end up paying less per month and your contract will probably be shorter than if you invested in a new car. So, overall, you still make out paying less than a new car.
Depreciation
New cars lose a huge amount of value right away. Literally once it is driven off the lot it starts dropping in value. Not only that, but even regular wear and tear on a new car can be devastating to the owner. Within the first year of owning a new car, it can lose as much as 40 percent of its value. If you have a used car, it will not take a depreciation hit the minute it leaves the lot and the inevitable wear and tear won’t be such a terrible thing. Even if your used vehicle looks nice, it probably already has a couple of chips and dings here and there from previous owners. New cars usually need GAP coverage in case of quick depreciation, so this is yet another expense on a new car.
Fees
Buying a car from a lot will include fees like various taxes and DMV fees that get tacked on whether it’s new or not. There may also be preparation, processing and advertising fees that you will be responsible for also. However, if you can find a used car from a private seller, then you will be able to avoid some of these fees that car lots will make you pay. You will also need full coverage insurance when buying a car from a dealer whereas if you buy privately you can opt for liability to make your monthly payments lower.
Variety
Sometimes, new cars aren’t the best quality cars. Some of the cars that were made in the ’70s and ’80s are still in great condition and the newer versions of them just aren’t cutting it quite the same. Buying a used care will give you a much wider range of availability in the type of car you get. There’s even more choices in the colors and models, not just the age. You aren’t limited to whatever models have come out in the past year or two.
So, now that you can see the benefits in buying a used car, maybe you’ll think twice when if comes time to replace what you currently have. It’s much easier to eventually own a used car outright than a new car. It will take you a lot of time and money to be able to own a new car outright and by that time, it may be time to get another one anyway and then the process starts all over again.
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