Last Updated on September 30, 2022 by John Robinson
When you buy a new car, you are buying more than just a vehicle. You are also buying into the hype and excitement of a new car purchase. You’re paying for the shiny paint job, the perfect upholstery, and all of those features that you saw in the commercials and brochures. But what if there was another way? What if you could buy all of those features and benefits without having to pay for a brand-new car?
Getting a used car is a great way to save money and still get all of the features and benefits that you want. However, some people are still skeptical about it, mostly due to all of the myths surrounding used cars. In this blog post, we’re going to dispel those myths by going over the essential reasons why getting a used car is a great idea.
You Will Have More Options to Choose From
When you’re looking for a new car, you’re typically limited to the models that are currently being produced. But, when you’re looking for a used car, choose from any of the previous year’s models as well as older models. This gives you a lot more options to choose from and increases your chances of finding the perfect car for your needs. Depending on your location you might also have access to imported cars that are not available in your country as new. For example, if you live in Minnesota in the United States, you can only buy a new Subaru WRX STI if you order it from a dealership. However, if you search for used cars for sale in Minnesota, you’ll find plenty of options, including the Subaru WRX STI Type RA. This opens up an entirely new world of possibilities and allows you to get the car you want.
Used Cars Are More Affordable
The most obvious reason to get a used car is that they are more affordable than new cars. When you buy a new car, you are also paying for all of the research and development that went into designing and building it. You’re also paying for the marketing costs associated with getting people to buy it. With a used car, you are only paying for the actual vehicle itself. In fact, you can often find used cars that are just a few years old for a fraction of the price of a new car. Not to mention, the value of a new car depreciates quickly as soon as it’s driven off the lot. That’s because a new car is no longer new, and therefore, not worth as much, which means you are automatic upside down on your loan from the moment you drive it away. With a used car, however, you can avoid the initial depreciation, so even if you do have to sell it or trade it a few years down the road, you’re more likely to get a better return on your investment.
Used Cars Have Lower Insurance Costs
Another great reason to get a used car is that they often have lower insurance costs. This is because insurance companies base their rates on the value of the car. So, if you have a newer and more expensive car, your insurance rates will be higher to reflect the increased value of your vehicle. With a used car, however, the value is typically lower, which means your insurance rates will be as well. For instance, the average insurance cost for a new Mercedes-Benz S-Class is $2,207 per year. But, if you opt for the same model that is just a few years old, the average insurance cost drops to $1,836 per year. That’s a savings of over $370 per year or almost $3,000 over the life of a five-year loan. This is not something to scoff at and is a significant amount of money that can be put towards other things.
Used Cars often Come with Lower Interest Rates
If you’re financing your used car, you may also be able to get a lower interest rate. This is because lenders see used cars as less of a risk than new cars. New cars depreciate quickly, which means there’s a greater chance that you’ll owe more on the loan than the car is actually worth. With a used car, however, the value has already been depreciated, so the lender knows exactly how much the car is worth and can offer you a lower interest rate accordingly. In fact, the average interest rate for a new car loan is currently about 5%, but for a used car loan, it’s closer to 4%. That may not seem like much of a difference, but over the life of a five-year loan, you’ll save almost $600 in interest by going with a used car.
Used Cars May Come with a Warranty
When you buy a new car, it typically comes with a warranty that covers any repairs or maintenance that needs to be done during the first few years of ownership. But, did you know that many used cars also come with a warranty? Most certified pre-owned (CPO) vehicles come with some sort of warranty coverage. And, even if the used car you’re looking at isn’t CPO, the previous owner may have purchased an extended warranty that can be transferred to you. This is something to consider if you’re worried about the potential repairs and maintenance costs associated with owning a used car.
Used Cars Cost Less to Register and License
Another added benefit of buying a used car is that they often cost less to register and license. This is because registration and licensing fees are typically based on the value of the car. So, if you have a newer and more expensive car, your fees will be higher to reflect the increased value of your vehicle. With a used car, however, the value is typically lower, which means your registration and licensing fees will be as well. This is yet another way that you can save money by opting for a used car over a new one. Just keep in mind that the amount you’ll save can vary depending on your state or province’s regulations so be sure to do your research beforehand.
As you can see, from saving money on the purchase price to reduced registration and licensing fees, there are plenty of reasons to consider going with a used car the next time you’re in the market for a new vehicle. So, if you’re looking to get more value for your money, be sure to keep these benefits in mind as you shop around for your next car.