In most places, having a car is a necessity for commuting and daily life. Cars aren’t cheap however and signing up for a long lease can seem risky. The solution is to consider buying a used vehicle. Used cars can often be had for a mere fraction of the original selling price, and yet still look and perform as if they were new.
Here are just some of the benefits of buying a used vehicle.
The first reason is the most obvious: buying a used car can save you a lot of money. On the other hand, buying a used car that has hidden or visible problems can end up costing you even more than a new car. That’s where it is important to make sure you do your research before buying. Make sure you are buying from a trusted retailer, view a few different options, and consider having a mechanic inspect the vehicle before purchasing.¹
That said, you can easily save thousands on a great quality used car. Considering that most people change to a different car ever six years, there is no need to pay 3-4x more for a new vehicle when you can buy a high-quality used vehicle instead. As an added benefit, many used cars have lower insurance premiums because they assessed at lower values.²
The Vehicle Keeps More Value
When you buy a new car it loses—on average—10 percent of its value in the first month. That means if you try to resell it you will get on average 10 percent less after only one month, with decreasing resale in the following years.³ One great advantage of a used vehicle is that it has already had the biggest drops in value and is more settled at a medium, fair price. In some cases, a reliable and high-quality used vehicle may even increase in value over time instead of losing value.⁴
Deals Are More Straightforward
When you buy a used car you generally pay for the car and that’s it – it’s yours. Unfortunately buying a new vehicle is not always so straightforward and there are often extra dealer fees, including hidden charges like documentation fees that start to add up and can result in you paying much more than you planned to by the time you drive off the lot.⁵
When searching for a used car or truck you can buy smart by ensuring that you get a certified pre-owned vehicle. What this means is that the vehicle has been officially inspected and checked for problems. This way, you won’t have to worry about any unexpected issues with the car once you’ve paid for it. In many cases you can also find a certified pre-owned vehicle that has a warranty as well.⁶
Another benefit of used cars is that it widens your selection. When choosing from years and decades gone by you have a wide array of choices, whereas if you are buying new you only have one or two years of new models to pick from. When you decide to buy used you can find a wide variety of brands—including foreign and discontinued models—that are exactly what you have been looking for. Furthermore, these cars can still be in excellent condition and turn out to be reliable and satisfying vehicles.⁶
Beginning with checking out your options online is the best approach, as you can search for dealerships and used car marketplaces to look at what inventory they currently have available. This will allow you to compare many different choices and pick the one that fits best with your budget and the kind of car you are searching for.