If you are looking to purchase a vehicle, one of the first decisions you must make is to buy a new vehicle or a used one. Both options have their pros and cons, so the determining factor usually comes down to your budget. A vehicle is a sizeable investment; however, making this purchase should not leave you in a financial bind.
Aside from the money-saving advantages that used vehicles have, there are also many other advantages in making a used car purchase. We hope that detailing these advantages will help you make the right decision in your vehicle purchase.
When a car is new, the first time you drive it off the lot, it’s value decreases. This drop can be as much as 20% of the value of the car. With every passing year, that value continues to fall by approximately 10%. On a brand new $20,000 vehicle, that means in three years that investment will only be worth around $10,000. Used cars have already gone through this process. Once you purchase a used vehicle, the depreciation will have begun to level off, letting that car retain more value for your money spent. And if the vehicle was properly maintained, you’ll have a vehicle that is just as good as a new car but at a much lower cost.
Obtaining financing for a used car is easier and more straightforward than financing a new one. Also, factoring in depreciation, once you drive off the lot in that new car, you are what is called “upside-down” on the loan, meaning that you now owe more than what the vehicle is worth. Financing used is a straightforward process and can be more practical than financing a new one.
Lower Insurance and Registration Costs
Insurance premiums are one of the higher costs associated with vehicle ownership. The average annual insurance premium is around $900 annually. Insuring a used vehicle, however, tends to lower this national average, making insurance costs more affordable than for newer models. Registration costs are also lower in pre-owned vehicles due to the lower vehicle cost.
Upgrades and Aftermarket Products
Vehicle upgrades on new cars can cost thousands during the initial purchase. If you decide to purchase a used car, however, you can do many upgrades and aftermarket changes for a fraction of that price. You can also pick and choose what upgrades are important to you, whether it be a new stereo with excellent speakers, or rear-view cameras and dash cams.
Getting the Car You’ve Always Wanted
Buying used can allow you to get that car of your dreams. If you’ve had your eye on a specific model, but the cost is holding you back, consider an older model year. Chances are you will find it at a much more affordable price than a new model.
Buying a used car is a wise investment and can be a better alternative than purchasing a new one, in more ways than just the price point. Advantage Car & Credit has six locations with over 200 cars in inventory, so we know we have the right vehicle for you. Visit us today or check out our online inventory.