Should I Buy A Used Car?
When a lot of people think of used cars, they think of cars that are damaged and cars that haven’t been taken care of. The truth is, there are lemons out there, but for the most part, you can find a ton of used cars that are certified vehicles and cars that might even look brand new. Buying a new car is one of the worst investments that you can make because it’s value dives off of a cliff literally once you drive it out of the parking lot. Therefore, it can be seen as a very poor investment to make. Especially considering the fact that if you are buying a used car, you can take advantage of the quick depreciation that car owners are faced with. In this article, we will discuss the benefits of buying a used car.
Benefits Of Buying A Used Car:
1. Initial Cost Savings.
The fact is, you are going to save a lot of money on the initial cost of the vehicle. While it may be nice to be able to ride a car that is brand new and has the brand new car smell, it is certainly not going to be worth the price gap that you will find between buying new and used. According to Cars.com, the price gap between buying a new and used car was around $20,000 last year.
While interest rates are typically slightly lower for new car purchases, the amount of different in interest is not going to make up that $20,000 difference in initial cost.
2. Depreciation Benefits.
As noted previously, when you are a new car owner, you have to witness the fall of your investment right before your eyes. Believe it or not, but new cars actually lose an average value of around 40% during the first year alone. As you can see, making this kind of investment is not only a bad decision, but it can be extremely heartbreaking, as well.
With a used car, you do not have the depreciation hit your investment right when you drive it off the parking lot. Therefore, there is also less stress on your purchase. With used cars, you don’t really need to worry about your first scratch and/or chipping your paint because most likely your car has already suffered the aftermath of it previously. Your previous owner had to worry about all of that.
3. Avoid New Car Fees.
Another benefit of buying a used car is that you might be able to avoid having to pay for new car fees. If you are buying a car at a dealership whether it is new or used, you are most likely going to have to pay for different fees including taxes and DMV fees. However, a lot of dealerships also tack on additional fees for different things including; processing payments, preparation of the car, and even advertising fees in some cases. Therefore, by purchasing your car used in a private sale, you can typically avoid all of these extraneous fees which further decreases your initial cost.
As you can see, buying a used car can be a good choice if you want to avoid spending more money than you have to.