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Why Buy Used Instead Of New

Why Buy Used Instead Of New

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.

Depreciation

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.

Financing Costs

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.

Why Buy Used Instead Of NewGetting 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.

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