Whether you’re a first-time car buyer or a seasoned veteran, there’s always the tough decision of whether to go with a new or used vehicle for your next purchase. New cars have the latest styling, tech features, low interest rates, and that much-loved new-car smell, but are they really the best option for you and your budget? We’re going to go over some used car knowledge and give you 4 great reasons to buy your next used car.
1. They are less expensive
Let’s get the obvious out of the way: In most cases, you’ll save money to buy your used car, and probably quite a bit. Once you buy a new car and drive it around the block, it’s not new anymore and that value drops quickly. According to Consumer Reports, your new car will be worth an average of 54% of the original purchase after just 3 years, that hurts!
Unsurprisingly, the average cost of a used car is well below that of a new model car, and that’s not the only room to save. Of course, you’ll pay less tax for a lower-priced car, and it’s often more affordable to insure them, too. However, you should take note of the vehicle’s mileage because the distance traveled and the remaining warranty will likely affect your maintenance expenses.
2. Financing rates and terms
With low manufacturer financing rates and longer terms available, dealers can show you some very attractive monthly payments for a new car, but don’t forget to do the math. Even a lower rate can really add up over a 7- or 8-year financing term, and the growth of Certified Pre-Owned (CPO) programs has really narrowed the gap. Not only do banks offer aggressively low rates on used cars, Certified Pre-Owned Cars offer even lower rates, plus the added bonus of additional warranty coverage and extensive vehicle inspections. The new car advantage is really starting to fade with exceptional used car financing options available.
3. Vehicle history reports
Maybe your hesitation about buying a used car is that you just don’t know where you’ve been or what you’re buying and that’s understandable, but with transparent reporting using tools like CarProof, you have a pretty good idea of what you’re buying. dealing with Vehicle History Reports may not be all-encompassing, but you will usually get essential information such as
The number of previous owners
Any accident or damage history with details
Previous registration status (Personal, Lease, Taxi, Rental, etc.)
Mileage validation and maintenance records
4. Reliability
If you’re thinking it might be a risk to buy a used car because it won’t last long, then you need to do some research. According to various studies, the average vehicle on the road today is over 10 years old and those numbers continue to rise as automakers continue to improve their lineups. Modern cars, trucks, and SUVs simply have longer lifespans than ever before, and that’s great news if you’re in the market for a used vehicle.
There’s a lot I like about being able to buy a new car that no one else has driven yet, but there’s no question that used vehicles are a better value. Now that you’ve read our 4 smart reasons to buy a used car, what’s your next purchase?