7 Smart Reasons and Advantages of Buying a Used Car
Cars depreciate, and you should keep that in mind when forking over thousands on a new car. Find out here 7 smart reasons and advantages of buying a used car.
Did you know that rising new vehicle prices in recent years have led to continually falling new car sales? This has caused buyers to opt for used cars as they feel they’ve been priced out of the new car market.
If you have a tight budget, buying a used car can seem like an attractive option financially. But you probably have some concerns over whether your car will have a warranty and last you a long time. You may also worry that you’ll have trouble finding financing.
The good news is that buying a used car can be a smart decision if you ignore many of the myths. You may not get the latest flashy model, but you can expect to save money in several ways and open up your vehicle purchase options.
Read on to read about seven advantages of buying a used car and decide if it’s a smart decision for you.
1. You’ll Pay a Lot Less Upfront
When you buy a used car, you first benefit from a lower price tag compared to a new model. While you could pay $25,000 for a new model, you could get a two-year-old version of the same vehicle for thousands less. You also won’t have to worry about that large depreciation that happens during the initial year of new car ownership.
Your savings don’t stop there, though. You usually avoid dealer fees such as shipping charges and preparation fees that apply to new cars.
You’ll probably also find that your car registration costs less since states often use the car’s age and value to determine this fee. A lower sticker price means less sales tax too. In some cases, your state may not even require sales tax if you use a private seller!
2. You Can Get a Quality Vehicle With a Warranty
The vehicle’s condition, expected life, and warranty are important considerations when shopping for cars. While some used cars are sold as-is, you can often find certified used models from local dealerships.
These certified used vehicles have undergone extensive quality checks to ensure they meet minimum standards and are safe to drive. You usually also get an extended warranty that covers major problems that could occur within the first months to years of ownership.
3. You Can Still Get Many Years of Vehicle Life
While you might feel reluctant to buy a used vehicle that is several years old, modern cars now tend to last longer. No longer do you have to worry much about your car rusting apart within 10 years of age. A 100,000-mile vehicle life can now stretch to 200,000 miles with appropriate maintenance and care.
Even when your used car does need work, you benefit from a range of service options, especially for common models. Buying an older model might also mean less new technology that can break easily. By buying used, you can potentially extend your car’s life while avoiding having to pay excessive repair costs.
4. You’ll Pay Lower Insurance Rates
You’ll need to pay for car insurance as long as you own the car, so you should factor this cost into your car purchase decision. While factors like your location and driving habits help determine your rates, so do the vehicle you drive.
Car insurance companies consider your car’s age, value, potential repair cost, and safety standards. So, when you purchase a used car, you’ll likely pay lower insurance rates than you would for a new car.
When shopping around for used cars, you can check car insurance websites to compare quotes for the models you’re considering. You can also look into having just liability insurance when your car no longer has much significant value.
5. You Still Have Access to Financing Options
Unless you’re buying your used car from a private seller rather than a dealership, you likely won’t have cash as your only option. If you can’t afford to pay for the car in a lump sum, you can use financing options like bank auto loans and peer-to-peer auto loans.
Your dealership likely has a used car financing program you can consider. But it also pays to shop around so that you can get the best interest rate and terms.
You might find that your local credit union has the best deal if you have good credit and can put the required amount down. If you’ve got less than stellar credit, you might look into peer-to-peer lending. A benefit of peer-to-peer lending is your used car has less of a risk for repossession if you do forget a payment.
Before choosing a financing program, you’ll want to consider how much you’ll end up paying over time with interest. If you use cash, keep in mind you might be able to work out a lower sale price and pay lower insurance rates too.
6. You Can See Your Vehicle’s Detailed History
Being able to see your vehicle’s history is another one of the benefits of buying a used car. Your dealership may give you this report for free as part of a certified used car program. But you can otherwise run the vehicle’s identification number yourself through AutoCheck or Carfax for a fee.
Seeing the detailed history of the used car gives you peace of mind about previous accidents or concerns about the car’s owners. For example, you’ll see how many people owned the car before you, whether the car was repaired, and how the car was used. You’ll also know if the car was in a flood and whether the mileage shown is correct.
7. You’ll Benefit From More Variety
Your budget usually plays a key factor when you shop for cars. With the cost of new cars continually going up, you may find yourself with few attractive options that you can afford and that fits your family’s needs.
When you buy a used car, the cheaper sales price opens up a wider selection of models. While you might only be able to afford new economy models, you could find an older luxury vehicle within your budget. You might also get better specs and features for your buck when you choose to buy used.
Consider These Advantages of Buying a Used Car
Now that you’ve learned these seven advantages of buying a used car, consider whether a used car fits your needs. If that new car smell isn’t too important and you just want some affordable, reliable wheels, consider starting your used car hunt.
You can explore your local dealership’s used inventory online and sort to discover certified used models. You can also do research to get reviews of cars you’re interested in and learn more about their reliability.
Be sure to check back for more tips and advice on car buying.