One of the biggest questions people face when purchasing a vehicle is whether to buy new or used. Most people opt to buy a new car because of the convenience and the fact that a new car may be customized. However, purchasing a used car can be more reasonable and economical. Below is a list of six benefits of buying used.
New vehicles lose more than half of their value after the few first 3 years of their life. One major benefit of purchasing a used vehicle is that the car has already been hit with the steepest portion of depreciation. You can drive your used car off the lot without it immediately losing a large portion of its value.
Lower Insurance Rates
You are still required by law to have liability auto insurance. However, used cars do not require high amounts of collision and comprehensive coverage because they are not worth as much as new cars. Insurance rates also depend on how likely the vehicle is to be stolen. Be sure to do detailed research on the car's history to ensure the car was never in an accident or had any major repairs, as these factors will affect your insurance rates.
Lower Registration Fees
Registration fees vary from state to state, but the newer the vehicle, the higher the fee. There are many websites that have Vehicle Registration Fee Calculators so you can get a better estimate of how much your used car's fees will be. You can also compare new car fees to used car fees, to see the difference in price.
Avoid Useless Extras
When buying a new car, dealers may try to add on unnecessary features. Buying a used car may not come with the latest technology, but you won't have to worry about being persuaded to buy features you don't need.
Certified Pre-owned vehicles
If you are looking for a late, used model that has been through a detailed inspection process, buying a certified pre-owned vehicle may be the route to go. In regard to price, CPOs are more expensive than basic used cars, but still less expensive than a new vehicle. Other benefits of a CPO include an extended warranty and affordable financing rates.
Over time vehicles have become more reliable. They are built to last at least 100,000 miles. It can be easy to find a used car that is in like-new condition, if you take the time to research. CPOs, as we mentioned above, are reliable in that they have been through a rigorous inspection process, so you know you are getting a dependable vehicle.