Used cars, of course, have a lower starting price point than new cars — the difference in price might be as much as 35 or 40%. But there are many financial benefits to buying used, instead of new. Here are three you may not have thought of:
Used Cars Come with Fewer Additional Costs
When you buy a new car from the dealer, you’ll probably be slapped with shipping fees or mysterious “dealer preparation” charges on top of the premium price you’re paying for the vehicle itself. These are fees you’re paying that give you no value or additional benefit. You won’t have to worry about this with used car dealers.
Other aspects of car ownership may cost less for used car owners as well. When it comes to registering your car, the costs may also be lower on a used vehicle than its new counterparts. Since insurance is also based on the value of the vehicle, you’ll probably be paying less each month for that as well, which can add up over time.
Used Cars Hold Their Value
Many people are willing to spend more on new cars because they think of it as an investment. But if you’re considering reselling at some point, a used car may actually be a better investment. This is because new cars depreciate steeply in the first few years of ownership—depending on the vehicle, somewhere around 30% in only two years.
When you buy a new car, you’re losing value as soon as you drive off the lot. This isn’t the case with pre owned cars, which may sell for a much higher percentage of what you paid, provided you keep the car in good condition.
Used Cars Let You Forgo Useless Extras
There’s no question that new cars come with nice perks and luxuries. But these often add thousands of dollars onto the purchase price without making the car any more functional for your needs. You might sacrifice Bluetooth connectivity or satellite radio, but a used car can provide transportation that’s just as safe and reliable as a new car for much less. And if you do want some of those newer features, buying a car that’s only two to five years old can provide you with the same amenities for a more moderate price. Most used car dealers offer a range of vehicles so you can find the right balance between price and features.
Modern cars should last at least 100,000 miles, and some will last a good deal longer. So there’s no reason to worry that a car will give out on you simply because it’s a few years old. In fact, according to Edmunds, new car sales only make up 29% of total U.S. sales, meaning that most people buy used — and this should be no surprise, since the average cost of a new car had climbed to $31,000 as of 2013. As long as you know what to look for when buying a used car and are working with a reputable used car dealer, affordable used cars can match up with both your pocketbook and your desired lifestyle.