While buying a new car might sound tempting, when it comes to getting more for your money, the benefits of buying a used car far outweigh that of purchasing a new one. Buying used is a very good way to get a nicer car at a far more affordable price. In purchasing a used car three years or older, consumers can realize big savings. Not convinced? Here are 8 reasons to consider the benefits of buying a used car over a new one:
1. Buying Used Cars Saves You Money
Top of the list of benefits of buying a used car is it will flat out save you money—and lots of it. The average price of used cars is upwards of 50% or less than a new one—for the same makes and models. The lower price can translate to lower monthly payments. It also allows you to pay off the car sooner, which saves on financing fees.
2. Limited Depreciation
One of the biggest “hidden” costs in buying a brand new car is depreciation. As soon as a new car is driven off the lot its value plummets by approximately 20%. Even worse, expect to lose another 10% in value by the end of the first year. If you purchase a brand new car for $30,000, by the time you have parked it in your driveway its value has already depreciated by $6,000! At the end of the first year, it has depreciated by another $3,000. With used vehicles, most of the depreciation has already happened or, by the third year, has flattened out. some older models will actually begin to gain in value around year five.
3. Certified and Thoroughly Inspected
Used cars on the market these days go through a rigid inspection program to become certified pre-owned (CPO) vehicles. This assures the buyer of a quality, fully-serviced, and thoroughly inspected the car at a bargain price at the time of purchase.
4. Extended Warranties
Many used cars offer extended warranties that carry forward from the original manufacturer. Other or additional warranties can also be purchased or acquired during the financing.
5. Lower Insurance Rates
The primary consideration in determining insurance rates is your car’s value. Therefore, because a used car has less value than a new car, the cost of insurance should be less. As the car gets older, some coverage such as theft can be dropped altogether if you choose.
6. Lower Annual Registration Fees
Annual registration fees are generally based on your car’s value and the year it was made. The registration rates are the highest during the first three years, and by the fifth year, the fees have lowered considerably. Buying a late-model used car can save thousands of dollars in registration fees over the ownership of the vehicle.
7. Cars Last Longer
Another reason to buy used is that cars are made far better, are more reliable, and last longer these days. It used to be that 100,000 miles was pretty much it for a car. Nowadays they are just getting going. Most mechanics would say that with regular maintenance and oil changes, your car should run up to 200,000 miles.
8. Vehicle History Reports
If a CPO or extended warranty is not enough to convince you to buy a used car, rest assured that when buying a used car the vehicle’s full history is also available for viewing. Thanks to companies such as Carfax and AutoCheck, a complete history report is available based on the car’s VIN, i.e., its vehicle identification number. The VIN report can verify its mileage, its history of ownership, and whether the vehicle was ever declared totaled by an insurance company.
If you’re in the market for a quality used car feel free to check out the extensive inventory. We have one of the largest inventories in the state of Arizona with hundreds of popular makes and models to choose from!