Whether you’re a first-time car buyer or a seasoned veteran, there’s always a tough decision to make about whether you should opt for a new or pre-owned vehicle for your next purchase. New cars have the latest models, tech features, low interest rates, and much-loved new-car scent, but are they really the best option for you and your budget? We’re going to take an overview of some used car wisdom and give you 4 good reasons to buy your next car.
1. It is less expensive
Let’s get out of the way – in most cases you’ll save money buying your used car and maybe a little money at that. Once you buy a brand new car and take it nearby, it’s no longer new and that value drops quickly. According to Consumer Reports, on average, your new car will be worth 54% of the original purchase after just 3 years—that hurts!
The average cost of a used car is expected to be much lower than the average cost of a new car model, and that’s not the only area of savings. Logically, you’ll pay less in taxes on a less expensive car, and it’s often more affordable to insure it, too. However, you should take into account the vehicle’s mileage because the mileage and remaining warranty will most likely affect your maintenance expenses.
2. Financing rates and terms
With lower manufacturer financing rates and longer terms, stock dealers can offer some very attractive monthly payments on a new car but don’t forget to do the math. Even a lower rate can really add up to 7 or 8 years of funding term, and the growth of CPO programs has really narrowed the gap. Not only do banks offer extremely low prices for used cars, but certified used cars offer even lower prices as well with the added bonus of extra warranty coverage and comprehensive vehicle inspections. The new car advantage is already fading with exceptional financing options available for used cars.
3. Vehicle history reports
Maybe your reluctance to buy a used car is because you don’t know where it is or what you’re getting it for and that’s understandable, but with transparent reporting using tools like CarProof you get a pretty good idea of what you’re dealing with. Vehicle history reports may not capture everything but you will usually get some basic information such as
Number of previous owners
Any accident or damage history with details
Previous registration status (personal, rental, taxi, rental, etc..)
Validate mileage and maintenance records
4. Reliability
If you think that buying a used car might be a risk because it won’t last long, do some research. According to several studies, the average life of a vehicle on the road today is more than 10 years, and those numbers continue to rise as automakers continue to improve their lineups. Modern cars, trucks, and SUVs have longer lifespans than they once did, which is great news if you’re in the market for a used car.
There’s a lot to like about the prospect of buying a brand-new car that no one else has driven yet, but there’s no question that used cars are the best value. Now that you’ve read 4 Smart Reasons to Buy a Used Car, what will your next purchase be?
