6 Benefits To Buying a Used Car vs New
It’s a debate that probably goes back to the invention of the automobile… which is smarter to buy, a new or used car? While many people insist that buying a new car is the only way to go, there are definitely valid and compelling reasons to buy a quality, pre-owned car, truck, SUV or minivan instead. Today we’re breaking down 6 Benefits to Buying a Used Car.
Vehicles aren’t cheap and the last thing you want to do is spend more money than you have to when you’re shopping for a newer one. The simple fact is that buying a used car costs a whole lot less than buying a brand new one. On average consumers can save up to half the purchase price of a new vehicle by opting to buy a pre-owned one instead. Not only does the higher sticker price on a new car mean you’ll pay more for the vehicle overall, but in some cases it also means you’ll pay longer on the loan you took out to purchase it. Longer financing inevitably leads to more interest, and dollars spent to purchase that car. And while some people may be put off by the idea that used cars are less reliable than their newer counterparts, reality is that the average age of cars on the road is up 3 years at 11 years old versus the 8 years found just a decade ago. Improvements to engine performance as well as an ever growing demand for higher quality vehicles have driven this new trend, making cars last longer than in years previously and making the purchase of a used car that much more advantageous.
It’s not just the up front cost of the vehicle that dings at your wallet when you purchase a new vehicle. It’s also in the escalating depreciation of its worth that takes place within the first few years of its ownership. Experts estimate that cars can lose as much as 19% of their value in the first year and an additional 46% within the first three years. Unfortunately, that drop in value is something you won’t recover when you go to sell or trade it in, meaning you are absorbing the loss when you’re ready to get into a newer vehicle. Buying a great used car that’s even a year or two older instead of a new one results in less depreciation on your end and less of your hard earned money being needlessly lost.
Before you can even drive off the lot, you’ll need to start an auto insurance policy on the car or truck you’re purchasing. The more expensive your vehicle, the higher the premium will typically be on your auto insurance policy. As mentioned above, a vehicle’s worth drops the older it gets and as it does so, the likelihood of an insurance company totaling it in the event of an accident increases. Because the cost to repair newer vehicles is higher than totaling out an older one, the owner will pay more to insure it, thus a higher premium.
If the average age of vehicles on the road today is 11 years old, it only makes sense that the amount of used cars available to purchase is much greater than brand new vehicles. Because of the increased supply of pre-owned vehicles, used car lots are able to generate much higher inventory options than new car dealerships. While new car dealerships are only able to supply their customers with one model (and usually by one maker), used car dealerships can offer a variety of different years, makes and models so you’re more likely to find a car, truck, SUV or minivan to truly fit your needs and budget.
Every dollar matters and when you’re buying a new or used car, the costs can add up. Value plays a role in determining the registration fee applied to your vehicles license plate every year. While it may not seem like a big deal at the time, every dollar you can avoid paying at the time of purchase helps.
When researching a particular vehicle, it helps to have some information available to research! Sure, the automaker can assure you the brand new vehicle they are selling is “First In Its Class” or tell you about some other award it has received but that doesn’t tell you what other people are saying about it after owning it for a while. Used cars have a history… problems they can develop or things they renown for, as well as owners or mechanics that are happy to share that information with you. Buying a great, quality pre-owned car, truck or SUV means you can read about other people’s experience owning and driving it.
Before buying your next vehicle, consider all the pro’s and cons to buying either a new or used car to decide which is right for you. If you decide that a pre-owned vehicle is the way you’d like to go, give us a call at Broadmoor Motors Hastings. We can save you time and money when buying your next quality, Pre-Owned Car, Van, SUV or Work Truck or even on your next Car Rental. Whether you need a short term car rental, long term car rental, a replacement while your vehicle is getting serviced or simply need to replace your car, minivan, truck or SUV with a great used vehicle, Broadmoor Motors Hastings can help you out. We are locally family owned & operated and pride ourselves in providing our customers with a pressure free environment to shop freely within. Check out our online reviews and feel confident with our reputation for quality vehicles at great prices. Broadmoor Motors Hastings is here for all your Car Sales and Car Rental needs in Barry County and in the Hastings area. Give us a call at 269.320.6304 to see how we can get you back on the road!