5 REASONS WHY
PURCHASING A USED CAR IS BETTER
THAN PURCHASING A NEW CAR
1. Save Your Hard Earned Cash Due To Depreciation
The #1 reason that depreciation is at the top of our list is: buying a used car saves you so much money compared to purchasing a new vehicle. Many experts say that as soon as you drive A new car off the lot, you lose as much as 15% in depreciation. Think about this: if you purchase a new car for $25,000 it may only be worth $21,250 by the time you pull it into your driveway. In addition, most new cars can lose up to 50% of their value in 3 years. Now your $25,000 new car is only worth $12,500… ouch! That doesn't happen with a used vehicle.
While purchasing a new car can be a great experience, it can also be one of the worst investments you can make. Furthermore, purchasing the right used car can be just as rewarding of an experience as purchasing new… but is almost always a much, much better investment.
The fact is, there have been many people who have purchased the right used car at the right price and turned around a year or two later and sold it for a profit. You gotta love that!
2. Save Because Used Vehicles Have Lower Insurance Costs
The first and foremost item that an insurance company looks at when determining your insurance rate is the car’s value. You can count on this stat: the more expensive the car, the higher your insurance rate. And by the way, don’t think for a second that the insurance company hasn’t figured the depreciation of that brand new car (that lost 15% of its value before you even dialed your insurance agent’s number). If you want to save money… your best bet is purchas the right used car.
3. Save Even More Thanks To Lower Registration Fees
Used cars, cars of lower value and older vehicles typically cost less to register than new cars or cars of higher value (depending on where exactly you live). While there are other variables, this is a serious consideration in most states. In addition to registration, many states assess annual taxes based on a vehicle’s age. Often after a few years those taxes can diminish or even go away completely.
4. Used Auto Dealers Are More Likely To Get You Financed
Used auto dealers have more options when it comes to financing a vehicle for hard-to-finance buyers. This means that they are more likely to be able to help someone with credit dings (and even dents) to finance a vehicle. You will find used auto dealers offering everything from “Low Finance Rate Programs” to "Buy-Here-Pay-Here Programs”. Often Used Car Dealers will even finance your vehicle themselves. This is a great (and sometimes the only) option for some people in the market to make a vehicle purchase.
5. Selection Is Often Even Better
Let’s face it; there are only a handful of Lexus or Saab dealers in your area. If you want a new Lexus but don’t necessarily like the dealer or dealership, it can be tough or impractical to go outside the area and visit another Lexus dealership. Due to the changes that the internet has delivered to purchasing autos (mostly a good thing), there are still issues to contend with if you are looking online for something specific… like you are going to pay more, in many cases, by having a dealer have a car that is not on their lot “brought in” from another dealership.
However, when purchasing a used car the story can sometimes be different. There are hundreds of dealerships in your area and many of them could have a Lexus on their lot. Their hands are not tied by make or model so the fact is, when buying used there are actually more choices. In addition, if you don’t like the dealership or dealer… just head on down the road to the next guy.
Finally, today’s used car dealers, on the average, have a much better inventory, better inventory controls and have access to more vehicles than ever before. Just find a dealership that you like and you’re "Good To Go"!