Buying a car is a big decision, and it can significantly impact your wallet. Many people think new cars are the way to go, but I’m here to tell you that preowned cars are often the wiser choice. There are many good reasons to buy a used car instead of a new one.
In this blog, I’ll share 18 solid reasons why you should always consider a preowned car when you’re in the market for a vehicle.
Lower price tag
Preowned cars are almost always cheaper than new ones, so you can save significant cash right from the start. This price difference can be substantial, often allowing you to afford a nicer model or a car with more features than you could if you bought a new one. The money you save on the initial purchase can be used for other vital things in your life, like paying off debt, saving for a vacation, or investing in your future. Plus, you’ll have more flexibility in your budget for unexpected expenses or upgrades to the car.
Less depreciation
New cars lose value quickly in the first few years, with some models losing up to 30% of their value in the first year alone. When you buy a used car, someone else has already taken this big hit in value, which means you’re getting a much better deal. Your car will still lose some value over time, but it won’t be as dramatic as with a new car. This slower depreciation means you’ll lose less money if you decide to sell your car later, and you might even be able to resell it for close to what you paid, especially if you’ve taken good care of it.
Lower insurance costs
Insurance companies usually charge less to insure used cars because the car is worth less, so it would cost them less to replace if something happened. Over time, these lower insurance costs can add up to big savings that you might not have considered when budgeting for a car. You might be surprised at how much you can save each month on your car insurance, which could amount to hundreds or even thousands of dollars over the years you own the car. This extra money in your pocket can make a real difference in your monthly budget.
Cheaper registration fees
Many states base their registration fees on a car’s age and value, which means older, less valuable vehicles often have lower registration fees. This means you’ll pay less each year to keep your car legally on the road, which is an ongoing savings you’ll appreciate every time you renew your registration. These savings might seem small at first, but they add up over the years you own the car, potentially saving you hundreds of dollars. It’s just one more way that choosing a used car can help you keep more money in your pocket.
Access to higher-end models
With a used car, you can often get a higher-end model for the same price as a basic new car. This means you might enjoy luxury features like leather seats, a premium sound system, or more advanced safety features without paying the luxury price of a new car. You get to experience the comfort and performance of a more expensive vehicle while staying within your budget. This can significantly enhance your driving experience and satisfaction with your purchase, giving you the best of both worlds – luxury and affordability.
Certified pre-owned options
Many dealerships offer certified pre-owned cars, which have been carefully inspected and refurbished if needed. These cars often come with extended warranties, giving you additional peace of mind. This option provides a great middle ground between new and used, offering many of the benefits of a new car (like warranty coverage and thorough inspections) but at a used car price. Certified pre-owned programs can take a lot of the worry out of buying a used car, making it a smart choice for those who want extra assurance about their purchase.
Vehicle history reports
Nowadays, getting a detailed history of a used car is easy through services like Carfax or AutoCheck. These reports can tell you about past accidents, how well the car was maintained, how many owners it’s had, and much more. This wealth of information helps you make a smart choice and avoid problem cars that might cost you more in the long run. It takes a lot of the guesswork out of buying a used car and gives you confidence in your purchase. You can use this information to negotiate a better price or choose between similar vehicles.
Wider variety of choices
When you shop for a used car, you’re not limited to just this year’s models. You can choose from many different years, makes, and models, significantly increasing your chances of finding exactly what you want. This variety means you might find a car with a unique combination of features that isn’t available in newer models. You might even discover a model that isn’t made anymore but has features you love. This wide selection allows you to be very specific about what you want in a car rather than settling for what’s currently available in new models.
Lower customization costs
If you want to add custom features to your car, it’s often cheaper with a used car. This is because you’re not paying to replace brand-new parts, and you might be able to find aftermarket parts more easily for older models. You can make the car truly yours without spending as much as you would to customize a new car. This is great if you like to personalize your ride with things like a new stereo system, custom wheels, or performance upgrades. The money you save on the initial purchase can go toward making the car perfect for your needs and tastes.
Ability to avoid unnecessary features
New cars often come loaded with the latest tech features, some of which you might not need or want. With a used car, you can choose a model with just the features you’ll use without paying for extras you don’t need. This can make your car easier to use and maintain and potentially save you money. You can focus on getting a car with the features that matter most to you, whether that’s a great sound system, advanced safety features, or excellent fuel economy, without being forced to pay for other features you don’t care about.
Less stress about minor damages
Getting a scratch or ding on a brand-new car can be really upsetting, but with a used car, these small imperfections don’t seem as bad. You can enjoy your vehicle without worrying about keeping it in perfect condition. This can make owning a car much more relaxing and enjoyable. You might feel more comfortable using your car for everyday activities without constantly worrying about maintaining its pristine condition. This reduced stress can lead to a more positive ownership experience overall.
Lower loan amounts
If you need money to buy your car, you’ll likely need to borrow less for a used car. This means smaller monthly payments and less interest paid over time. You might even be able to pay off your car loan faster, which can really help your overall financial health. Lower loan amounts can also make it easier to qualify for financing, and you might be able to afford a shorter loan term, saving you even more in interest over time. This can have a positive impact on your credit score and financial flexibility.
Avoid new car fees
New cars often come with extra fees like shipping charges, destination fees, and dealer preparation fees. These can add hundreds or even thousands to the price. Used cars usually don’t have these extra costs, so what you see on the price tag is much closer to what you’ll actually pay. This can make budgeting for your car purchase more straightforward and can help you avoid unpleasant surprises when it’s time to sign the paperwork. It’s another way that buying used can help you keep more money in your pocket.
More negotiating power
Dealers often have more room to negotiate on the price of a used car. This means you might be able to get an even better deal if you’re good at bargaining. Don’t be afraid to make an offer lower than the asking price – you might be surprised at how much you can save. This negotiating power can extend to other aspects of the sale, too, like warranties or included maintenance. With some research and confidence, you could potentially save hundreds or even thousands of dollars on your purchase.
Proven reliability
With a used car, you can research how reliable that model has been for other owners over the years. You can find out about common problems, how well the car holds up over time, and how long these cars typically last. This information isn’t available for brand-new models, which haven’t been on the road long enough to establish a track record. It can help you choose a car that will serve you well for years to come, potentially saving you money on repairs and maintenance in the long run. You can use resources like consumer reports and owner forums to get real-world information about the car you’re considering.
Lower sales tax
In many places, you pay less sales tax on a used car than on a new one because the car costs less to begin with. The difference in sales tax can be hundreds or even thousands of dollars, depending on the price of the car and your local tax rates. This is another way buying used saves you money you might not have considered. It’s worth calculating the potential tax savings when you’re comparing the total cost of a new vs. used car. This saved money could be used for other car-related expenses or put towards your savings.
Avoid waiting for orders
If you want a specific new car, you might have to wait weeks or months for it to be built and delivered, especially if you want certain features or colors. With a used car, you can usually drive it home the same day you buy it. This is great if you need a car right away or just don’t like waiting. It also means you can start enjoying your new-to-you car immediately, rather than having to arrange alternative transportation while you wait for a new car to arrive. This immediate availability can be particularly valuable if you’re replacing a car that’s no longer reliable or has been in an accident.
Environmentally friendly choice
Buying a used car is often better for the environment than buying new. Making a new car uses a lot of resources and energy, contributing to carbon emissions and other environmental impacts. When you buy used, you’re not creating demand for a new car to be made, and you’re also keeping a perfectly good car from possibly ending up in a junkyard too soon. This choice helps to maximize the use of resources that have already been expended in manufacturing the car. If you’re environmentally conscious, choosing a used car can be a way to reduce your carbon footprint while still enjoying the benefits of car ownership.
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