If you’re about to scrap your current car, it stands to reason that you will soon be looking for a new one. If this is the case, you should definitely consider buying used. Here’s why.
Being the first person to own a car is nice, what with the new car smell and a single digit mileage figure, but it means paying significantly more for your vehicle. Of course, the price you pay upfront, or the size of your loan payments, is not the only thing that you will have to consider. Since new cars are more valuable, they are also more expensive to insure.
New cars lose a significant amount of value the second you drive them away from the dealership. They will often go on to lose as much as 40% during their first year. However, depreciation levels off after the third year, so buying used makes sense.
A final price-point to consider – the asking price that is advertised by a dealership will not often be the price that you end up paying. Random fees might seem manageable in isolation, but they can quickly add up when buying new.
When you buy new, you’re only able to look at models made that year. When you buy used, you’re able to browse a much more comprehensive selection. You can look for features that are no longer offered and even vehicles that are no longer made. The supply available is close to endless, especially if you start looking a bit further away than normal.
Buying a used car has always made financial sense, but recent technological leaps have made it a more practical option. Buying used no longer means having to look through the back of the local paper. You can now use online aggregate sites to narrow down results and find exactly what you’re looking for, while other sites are able to provide a complete picture of the vehicle’s history.
Ultimately, buying used means getting exactly what you want – and at a better price.