Car buyers sometimes get nervous about buying a used car, afraid they are going to buy a car that previously caused headaches for someone else. While this can happen when buying a used car privately, most dealerships check used cars thoroughly before selling them, greatly decreasing the odds that you'll regret your purchase. There are actually many benefits to buying a used car that shoppers overlook to their own detriment. Here are a few.
Used cars cost less than new cars. The average price gap between a used car and a new one in 2014 was $20,000. This is a significant amount of savings. Buying used may also save you money on financing. Most lenders require a 10% down payment on a car loan. The less you pay for the car, the lower this amount will be, making it easier to buy a used car when financing is a necessity and cash is limited. Buying used may also help you get some fancy features and upgrades you couldn't otherwise afford.
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Buying used can save you on the cost of purchasing a car, but it also saves you money when insuring it. Used cars cost less to insure than new ones and, if the car is purchased without financing, doesn't require collision coverage. With the exceptions of antiques and classics, a car's replacement costs go down as its age goes up. Since they'll spend less to replace it, your insurance company can charge less to cover it.
Unfortunately, lemons happen. Sometimes a new car just doesn't perform as it should. Lemon laws exist to protect consumers but can be tricky and time consuming to navigate. Recalls often happen and can affect thousands of new cars, as well. When shopping for a used car, you already know if there has been a recall on a certain model and can check to see if the car was fixed. You'll also know that the car isn't a lemon and works well based on the dealership's inspection report.
A new car is a substantial investment, and one that drops significantly in value during the first year of ownership. Some cars lose as much as 40% of their value in just 12 months. By buying used, you can purchase a car after this depreciation has occurred, so you can expect a better return on your investment if and when you choose to sell the car later.
Used cars are a terrific option for many buyers and offer significant benefits over their new counterparts. Even if you have the budget for a new car, opting for a used one can get you a lot more bang for your buck. If you're in the market for a car, take the time to look around at the used options available in your area. You might just be surprised at what you find.
If you're looking for a sleek, reliable and affordable used vehicle, stop by our showroom, or contact us to schedule a test drive.