Why Your Next Car Should Be Pre-owned

Boasting nearly 40 million in sales, the used-car business is booming and double the size of the new car market. An increasing number of savvy Americans are recognizing the benefits of buying used instead of new.

The price gap between pre-owned and new cars has widened to a decade high, and while car buyers can benefit from a cheaper vehicle, you no longer need to compromise on quality.

Car buyers can now find a growing selection of low-mileage cars and trucks that are just a few years old.

Used Cars Save You More than Just the Purchase Price

While buying a used car undoubtedly saves you money on the ticket price, there are also huge savings to be had when you buy auto insurance and tax.

The interest rate on any loans or financing you choose to take out on the car will often be more, but the overall interest you will have to pay over the entire life of the loan is likely to be less, as the price of the vehicle is lower.

A used car or truck can also be much easier to fit into your monthly budget. With lower costs for a used vehicle, you will also have smaller monthly payments.

This will hopefully help you avoid the need to take out a loan that lasts several years, which is a common, but not budget friendly, way to buy a car.

Buying Used Avoids You Taking a Huge Depreciation Hit

That moment that you drive your new car off the dealer’s lot, the value of the vehicle immediately starts to drop.

This is called depreciation and a huge downside to buying a brand-new car. It is during the first few years of ownership when much of a vehicle’s value is lost, while there is much less depreciation during a car’s later life.

When you buy used instead of new, it is the first owner who has to take on the initial big depreciation hit.

This leaves you as the used buyer, a much lower-priced vehicle that will depreciate at a much slower rate as it ages.

Depreciation is one of the biggest costs of owning a car, although you don’t actually feel it until you come to sell the car on and discover the vehicle’s value at that time.

You Can Afford to Buy a Better Car with Pre-owned

As used vehicles are much less expensive, you can actually buy a much better car than you might have been able to afford if you had bought it new.

In fact, the price of a pre-owned car mainly depends on its condition and mileage.

So, if you are prepared to buy a car with slightly higher mileage on the clock, or perhaps might not be in showroom perfect condition, you can often get much more car for your budget.

Learn Which Cars Are Best to Avoid

When a car is a few years old, it will have developed a reliability record. Before you have even bought the car, you can find out information about the total cost of ownership, which can help you decide which models to avoid such as ones that are expensive in the long run.

There are also online owners’ forums where you can find out about the issues and problems that current owners are dealing with.

These forums can be a useful way to discover trends like early transmission issues, problems with certain features or even the costs of major repairs.

The benefits of buying a car are far more than just a cheaper purchase price.

When you are looking to buy a previously owned vehicle, you avoid taking a significant hit on depreciation, you can learn which models have certain issues that are best avoided and above all, you will be able to buy an even better car that you would never be able to afford to buy new.

Buying used gives you all the perks of buying a brand new car, without the expensive drawbacks.

Category: Car Purchase