Most Americans want to buy a car that costs about $5,000 or less. However, with new cars costing an average of $35,309, more and more people are choosing to buy used cars. And used cars price tags aren’t the only reason. Here are some other benefits that you may not have heard about.
You won’t be shocked by the price.
If it’s been a while since you bought a car, you may be sticker shocked if you look at how little you actually get for the price. That’s because there are so many new features nowadays that new cars with all the bells and whistles cost a lot more than they used to. You may not have enough saved up for a new car, or your credit might not be good enough to secure good financing. With used cars, you can find many more options within your budget.
You can get good financing on used cars.
Many people may think that they can’t get good financing on used cars, but you can often get reduced-rate loans. Used car dealers often have their own financing to offer, as well, called buy here pay here loans, even if you have bad credit.
Depreciation is less on used cars.
If you find a car that’s at least three years old, the depreciation will be less. That’s because a new car will depreciate 45% in the first three years that it’s owned, and 25% the three years after that. A used car, on the other hand, will only depreciate 15-20% each year because it’s past the three year mark.
You can get lower insurance rates on used cars.
Auto insurance is almost always less on a pre owned vehicle because rates are based on the value of the car. If you’re spending $5,000 or less as opposed to $35,000, those savings could be significant.
You can get a better car if you buy used.
The vehicles that you can find at a used car dealership nowadays are more reliable because they are newer and because they often have certified pre owned programs. Pre owned vehicles are reconditioned and come with warranties with these programs. You can get a car that is practically new after it’s been reconditioned. You can also get a used car with more features than you could otherwise get if you were buying a new car due to the cost.
If you’re looking for a new car, you may want to consider buying used because of all the benefits. New vehicles are becoming too expensive for many people, so industry standards for used cars are changing in a way that can get you into a better car for less money.
