Did you know that 88% of Americans own at least one car? Don’t feel left out if you’re still considering getting one. The real question to consider, however, is whether or not to get a car brand new or used.
That said, buying a used car is your best option. Many consider it the only option when you’re tight on a budget but a lower price tag isn’t the only benefit to reap.
What are the other benefits of buying a used car?
Don’t fret, we’ve got the answers you seek. Read on and find out more:
1. Money Savings
The average price of a used car is around $20,000. This is 50% lower than the average of brand-new cars, meaning you can pay it off faster. This ensures that you save more money on financing fees.
Take note, most car owners will switch cars after six years of their purchase. If you pay $20,000 instead of its $40,000 counterpart, you can opt to get a nicer car for your next purchase. Otherwise, you can buy a car at the same price, saving you even more funds.
2. The Bulk of Depreciation Already Happened
Lots of car owners complain about the quickness of their new vehicle’s depreciation. As soon as you drive off the showroom and to your home, your vehicle’s value drops by 11%. This means a $20,000-vehicle becomes $17,800 once you get home.
The car will continue losing its value as time passes. If you buy a used vehicle, you need not worry about depreciation. After all, the bulk of the process already happened before you owned it.
On rare occasions, you might find that your used vehicle gained value.
3. No Exaggerated Fees and Lower Customization Costs
A new car deal looks great on paper, but most will have hidden fees. Some of these include freight charges, destination fees, and dealer preparation costs. The worst part is that the prices for these hidden fees can go as high as $1,000.
If you buy used cars from reputable sellers, you’re usually free from hidden costs. However, you might still get a doc fee for your purchase. This can cost a few hundred dollars, which isn’t as bad.
Another cost you’ll avoid when opting for used cars is the expensive add-ons. It’s because you can install these same upgrades on your own if you have a used car. It’s a good way to get more value on the money spent when buying your vehicle.
4. Certification and Thorough Inspection
If you get certified pre-owned vehicles, you can expect quality. It’s because these cars went through a thorough inspection. This means a reputable certifying authority inspected, refurbished, and certified these vehicles.
The best part is that these certified pre-owned vehicles have an extended warranty. You can also opt for special financing and other desirable benefits. This is unlike new cars since their only assurance is their newness.
Depending on your purchase, your used car might have part of its original warranty. If it doesn’t, you have an option to make a new one. If you get an extended manufacturer warranty, factory-trained technicians can repair your used car with high-quality components.
The money you saved buying a used vehicle can go to extended warranties instead. This means you’ll have a warranty that can cover your vehicle until 100,000 miles and up. You won’t find that deal with new cars.
6. Lower Insurance Premiums
Getting into an accident with your new car means your insurance will pay for the car’s worth at that time. This leaves a gap between the purchasing price and the vehicle’s true worth. To fill this, you must get gap insurance.
Gap insurance covers the difference between the new vehicle’s price and its depreciated value. The only drawback is that it raises your insurance premium. This isn’t a problem for you if your used car already went through the depreciation process.
7. More Environment-Friendly
A quarter of a vehicle’s carbon dioxide production throughout its lifecycle happens during manufacturing and shipment. With this, buying a used car means decreasing your carbon dioxide output. The good news is that used cars have minimal impact on the environment when compared to new vehicles, even when they’re hybrid.
Hybrid vehicles have batteries that use either lead-acid, lithium-ion, or nickel-metal hydride. These cause a larger impact on the environment. It happens because the batteries and acid leave behind toxic waste.
8. Lower Annual Registration Fees
Most states determine your annual registration rates using our car’s value and model year. As a general rule, this rate is at its peak in the first three years. Within the next half-decade, these fees level off.
If you want to save thousands of dollars, buy a used car with at least three years’ worth of use. That way, you can avoid both new and annual registration fees. It’s perfect if you aim to save more money in the long run.
9. Similar Performance as New Cars
Today, most car models last longer than ever because of technological improvements. This means that the idea of new cars being more reliable became a myth. With new and improved safety features, used cars last longer without losing much of their value.
With this, you can drive a used car for years without breaking your peace of mind. The best part is that the new-car smell and look will often last for several years.
10. Lower Loan Amount
When financing a used car, know that the cheaper price means applying for a loan of a lesser amount. With that, you’re likely to pay it faster, avoiding unnecessary interest. Aside from the price, this is one of the best benefits of buying a used car from dealer shops.
Reap the Benefits of Buying a Used Car Today!
These are some of the benefits of buying a used car. Use these benefits to motivate you to purchase a used car instead of wasting more money on new ones.
Did you find this vehicle-shopping guide informative and useful? If so, consider reading our other posts and learn more valuable information related to cars.