Buying a car, whether it’s your first or your third time, is a huge decision. People hang on to their cars for up to ten years, so it goes without saying it’s quite the commitment — one you want to make sure to get right.
Today, we’re answering the age-old question — is buying a used car worth it? Keep reading to find out.
The Advantages of Buying a Used Car
When it comes to buying your next car, picking a brand new one off the lot is incredibly tempting. After all, it would mean getting the most up-to-date technology and features and you’d be the first person to put miles on it. Plus, who can resist that new car smell?
However, there are just as many perks when it comes to buying a used car, if not more!
It’s pretty well-known that cars depreciate quickly. While some models will retain their value better than others, most will lose as much as 20% of their value after the first year of ownership. After the first year, depreciation slows down by a whole lot.
Why does this matter?
For starters, when it comes to financing a new vehicle via car loan, you’ll end up owing more on the loan than your car is worth once you drive it off the lot. What’s more, if you buy a brand new car and decide to sell it after only a year of ownership, you end up losing out on your investment — and it’s all thanks to the car’s depreciation.
However, buying a used car that has already depreciated some means you have a better chance of getting more of your money back should you choose to sell it.
It’s More Budget-Friendly
It’s no secret that buying a used car is much less expensive when compared to buying a brand new one. What’s even better is that you’ll likely be able to find a car that’s just a year or two older and essentially identical to the newest version of what you want. You may even be able to find the newest version of the make and model you want.
On top of that, if you’re paying in cash, you’ll be able to save even more money — we’re talking thousands of dollars. Lastly, if you are financing the vehicle, you’ll end up with a significantly lower monthly payment when compared to financing a new car.
Certified Pre-Owned Options
There are plenty of certified pre-owned (CPO) options and extended service contract offerings that allow you to not only save money on your used vehicle, but purchase a used car with confidence.
Extended service contracts (commonly referred to as “Extended Warranty”) and CPO programs vary, but all offer some level of protection for covered mechanical failures that can save you from the expense of mechanical repairs that are inevitable on any vehicle.
Car buying fees are determined based on several different variables, just as insurance rates are. If one thing is for certain, however, it’s that used cars come with less expensive fees compared to their shiny new counterparts.
This is especially true when it comes to sales tax since tax is based on the purchase price.
Lower Insurance Costs
Car insurance premiums are based in part on how much they’d expect to pay out should you file a claim. Essentially, when you have a less expensive car (value-wise), it would be less expensive to replace if it were to be involved in an accident or be totaled. As a result, insurance rates tend to be lower for used cars.
However, it’s important to keep in mind that insurance rates vary based on a variety of factors including your age, driving history, credit score, mileage, location, make and model of your vehicle, plus the type of coverage you choose. Therefore, it’s a good idea to shop around before committing.
So, is Buying a Used Car Really Worth It?
Of course it is!! Not only are used cars way less expensive, but you’re able to get nearly all the same guarantees from warranty, body service, and even roadside assistance!
If you ask us, we’d say you’re crazy for even considering getting a new car over a used car! If you’re ready to find the perfect car for you and your lifestyle, shop our wide variety of used cars today!
Although buying a pre-owned vehicle is totally worth it, you need to be proactive throughout the process to make sure you’re getting exactly what you want and need!
Read on to see how to make sure your used car is worth it!
What to Avoid When Shopping for a Used Car
While there’s a big upside to buying a used car, you could still end up with the short straw if you’re not careful. From paperwork and kicking tires to mileage and inspection, it’s imperative you pay very close attention!
That’s why you’ll want to avoid making the following mistakes and keep a look out for any other potential errors throughout the entire buying process!
Not Doing Your Research
Don’t just head on over to a dealership without knowing what you want and what it’s worth in the current market. Having all of the pricing data handy will help when it comes time to talk turkey.
Have an idea of the make and model you want and what a realistic value is for that vehicle with the miles and features. It’s always better to have too much information as opposed to too little.
You also want to make sure you know exactly what type of vehicle will fit your everyday needs whether it be a sedan, an SUV, or even a pickup truck!
Not Having Your Finances in Order
If you’re buying a used car to save money, then it’s essential to know what you can afford outright or in the long run.
Many people shopping around for new or used cars tend to only think about the monthly payments. Of course, lower monthly payments are good for your current budget, but they could also mean longer pay periods which means you end up paying more over time.
It’s better to get preapproved for a car loan before heading to the dealership. This way you’ll get to see where you stand credit-wise. You may have the opportunity to set up a loan with better terms than the dealer can offer— and knowing this prior to your dealership visit will be important..
You’ll also want to consider what your out-the-door price will be when all is said and done. Remember that you’ll have sales tax, registration and other fees on top of the vehicle sale price to consider.
Not Having the Car Inspected
It doesn’t matter whether you’re buying a used car from a dealership or a private seller. Always have the car inspected by a trusted mechanic to make sure that you understand the vehicle condition and needs prior to making your final decision.
Knowing the current condition and getting an estimate for the possible needs will help understand your total cost.
Looking in the Wrong Places
People tend to associate used cars with old, squeaky things in need of repairs. The truth is, you can get a used car that’s practically brand new with all the bells and whistles for an affordable price. You just have to know where to look.
We make the used car buying process straightforward by providing drivers like you with access to all the products and solutions that are usually only available at dealerships. When you shop with Motobyo, you’ll get top-tier auto industry expertise and peace of mind right at your fingertips.