Anytime you are looking at purchasing a car, you will always be presented with the option of new or used. While the dealerships and other sales assistants will try to push you to purchase a new car, it is almost always a better deal financially to go for the used ones. Here are six of the biggest reasons you should consider going with a used car instead of a new one.
The Car Will Have Already Experienced Most of Its Depreciation
If you buy a new car than within the first year, you will lose up to 50% of its value from depreciation. As soon as you drive it even without adding any miles, it will already lose a significant chunk of its value. If you purchase a used car, then it will have already lost most of its value through depreciation.
Get a Better Value for Your Dollar
This ties in with the depreciation, but you are almost always going to get a better value if you buy used. This means that you are going to get more cars for each dollar that you spend then if you did go and buy a new car instead.
There Are More Options to Choose from
This is one of the most avoided reasons to go for a used car. While there is certainly plenty to choose from in the new car market, there is an order of magnitude more options available in the used car market. If you like to have a wide variety of options here, you will always have more of them buying used.
Registration and Insurance Are Both Less Expensive
So not only is the car less expensive but almost every other cost associated with owning the car is less expensive. Insurance and registration fees are both more expensive if you buy a new car. Sometimes it can add up to thousands of extra dollars each year spent to maintain your car. Used cars, on the other hand, do not cost nearly as much to maintain insurance and renewal registration.
Modern Cars Can Last a Long Time
In the past, cars were not able to go much further than 100,000 miles. Today it is not uncommon to see cars doing multiples of that. That means that even if you look at a used car and it seems to have a fairly high number of miles, it does not mean that the car is in bad shape.
There could very well be an additional 150,000 or more miles on the car even if it is already at 100,000 miles. One of the biggest reasons people avoided purchasing used cars in the past was because they did not last long enough for it to be worth it. This is no longer an issue, thanks to the higher quality of construction found in modern cars.
Repairs Can Be Much More Affordable
A lot of first-time car buyers do not think about this, but the cost of repairs for a car could be one of the highest costs of ownership. It is almost always the case that repairs on a new car will be more expensive than repairs on a used car. New cars have not had the same amount of time for their parts to be spread throughout all of the mechanics of the country.
Because of the limited supply for parts they can be more expensive and mechanics are also able to charge more for the labor on the cars if you are trying to save as much money as possible, using the only way to go.