The Benefits of Buying a Used Car
Buying a car is an important decision, but it doesn’t have to be expensive. Buying a used car might be the best option for you if you are looking to save money on your next purchase. For those who are still not convinced about buying a used car, here are some of the pros of purchasing one.
#1 Lower prices mean a larger variety to choose from
Buying a used car means you get to choose from a larger variety of vehicles. This is because more people are selling their used cars than those who want new ones, which drives down the prices for these second-hand buys. When buying a new vehicle, what you see on offer at the dealerships will likely be all there is since most manufacturers tend to release only one or two models per year. With so few options available, competition isn’t strong enough among buyers, thus allowing dealerships to have much leeway in pricing.
On the other hand, when shopping around for used vehicles, there are usually several brands being sold by various sellers, which gives consumers many choices depending on their preferences.
#2 Most of the deprecation has already been applied to the car’s initial price
One of the main reasons why buying a new vehicle is expensive and not-so-attractive, especially if you’re on a budget, has to do with depreciation. Basically, when you buy a brand new car, it loses its value right after, which means that your money won’t last as long in this type of purchase compared to picking up an already used vehicle.
In fact, for every year following the moment you purchase your ride from a dealership or private sellers, its value depreciates by about 20%; so realistically speaking, five years down the line, your second-hand car will be worth only 60% of what was initially paid for it. This may not appear significant at first, but over time, you’ll definitely start to feel it!
#3 Insurance will cost less
Insurance premiums increase with the value of your vehicle, which makes purchasing a new vehicle more expensive. However, when it comes to buying used cars, insurance costs tend to be less because their overall worth is already lower.
For instance, if you buy an old car from edmunds and get into an accident that totals it out for $15 000, then the damages will not be as great compared to getting behind the wheel of a brand-new model that could cost up to $30 000 in repairs; thus making renting very impractical or outright impossible without shelling out such large amounts.
#4 Pay the car off quicker
When you buy a new car, your loan payments will be higher because the total sum of money required to purchase and own it is at its highest. However, when it comes down to buying used cars, this is not as much of a problem since their prices are already lower and because some people sell them after only one year, which means that your monthly payments will be smaller as well.
In conclusion, purchasing a new vehicle isn’t always the best option no matter how badly we want one, especially if our budget can’t accommodate such expensive purchases without going into debt in order to afford it. Fortunately, there are plenty of benefits to buying used cars that can help us save money while still getting behind the wheel of a reliable vehicle!