While it’s true that the iconic new car smell is pretty great, budget-conscious buyers have plenty of reasons to consider a used car instead. Consider these six key benefits of purchasing a pre-owned model for your next vehicle.
1. Lower Rate of Depreciation
We’ve all heard that a new car decreases in value as soon as you drive it off the lot. However, depreciation slows as the car ages, which means you’ll lose much less money to decreased value if you choose a model that’s a few years old. The original owner absorbs the biggest drop in the car’s worth. According to Car and Driver, some cars lose as much as 40 percent of their value in the first year of ownership.
2. Lower Out-of-Pocket Cost
A used car costs much less than a new version of the same model. This means that you’ll spend less, which might allow you to purchase a higher-end vehicle than you could otherwise afford.
3. Lower Insurance Rates
While your insurance premiums will vary by where you live, your driving record, your credit score, and other factors, insuring a used car is generally much cheaper than insuring a new car. To avoid costly surprises, get quotes for the model you’re considering before driving it off the lot.
4. No Sales Tax
According to Money Crashers, most states do not charge sales tax on a used car. By contrast, state sales tax on a new model can run into the thousands depending on the vehicle. Research the sales tax policy for used cars in your state to see if you can stand to save by choosing a pre-owned model.
It’s not necessary to buy a new car to have a reliable means of transportation. Most modern vehicles are built to drive for at least 100,000 miles with relatively few problems. Research model reliability when you’re considering a used car purchase to make sure the vehicle in question doesn’t get dinged in this category by industry experts. Some manufacturers also offer a warranty on some certified pre-owned used cars, which must also meet specific factory standards.
6. Less Stress
If you buy a new car, chances are you’ll be stressing out over every scratch. If you can’t handle the psychological cost of that first dent, choose a used car that’s already been around the block a few times. Chances are, you’ll be more relaxed behind the wheel.