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Other than your home, buying a car may be the biggest purchase you make. There are many factors when choosing which car is right for you, what body style, make, or model. However, the first thing you should decide is whether you want to buy a used or new car. While both have their benefits, there are four great reasons your family should buy a used car instead of a new car.
When you purchase a new car, the car drops in value as soon as you drive it off the lot. A new car may lose up to 30 percent of its value in the first year alone. For a 25,000 dollar car, that is 7,500 dollars of value lost. After the first few years, cars lose value at a faster rate, so the first owner has taken the depreciation hit. When you buy a used car they lose value much more slowly.
Better Information Available
While new cars have been reviewed and tested, it’s hard to get a feel for any issues they may have until they come up. When a model has been on the road for a bit, you can get more accurate information about the model’s reliability. It is much easier to do research on a car that has been out on the for a little while, so you know of any problems that may pop up, or issues that other drivers may have had.
Cheaper Insurance Rates
Insurance rates on used cars tend to be less expensive overall than insurance on new cars. They have a lower value due to depreciation, so they are less expensive to replace in the event of an accident. Plus, it is easy to research insurance costs for a used car. Insurance rates do depend on your driving record, the body style of the car, and other factors, too.
Buying a used car will also mean that you can save money in the short and long term as well. You won’t have the big monthly payments each month that you will have with a brand new car. This allows for more room in your budget for other needs and wants. Also, if you buy a new enough used car, it still be reliable and it will still hopefully not need as many repairs as an old and warn out car as well. So while you may not be getting the newest and most upgraded car on the lot, you can still get something close to it for less even though it has been previously used.
Fewer Fees and Taxes
When you buy from a used dealership, such as Woody Sander Ford, you don’t get hit with extra fees and charges. Used cars don’t come with dealer fees, detailing fees, and other additional costs that tend to come with buying a new car. Also, because the purchase price is less, you’ll pay less in taxes!
While buying a new car seems exciting, buying a used car gives you more bang for your buck. Whether you choose to save money on the used version of a car you love, or you want to upgrade to a more upscale vehicle, buying used gives you that option. With the right care and maintenance a used car is still likely to last you several years.