After buying a home, the biggest purchase that most people will make is the purchase of a car. When buying a car, the first big decision is to choose between buying a used and new car. While many people may be attracted to the option of buying a new car, there are seven clear benefits that come with buying a used vehicle over a new one.
1- Better Price
The main benefit of buying a used car is that it will cost far less than a new one. When buying a new car, you will end up paying a premium on the price of the car for the fact that you are the first driver. This premium is often 20% or more. The second that you drive the car off of the lot, the value will decline considerably.
2- Less Depreciation
Similar to getting a better price on the car day one, when you buy a used car you will also incur less depreciation going forward. A car is a depreciating asset that goes down in value every day. However, the depreciation of a car tends to be much more significant during the first few years of the car’s existence. If you purchase a car that is a few years old, the rate of depreciation will be considerably slower as long as you continue to follow a maintenance schedule.
3- Lower Insurance and Taxes
“When you purchase a used car, you will also incur lower insurance and taxes than if you buy a new car,” said Used Car Factory. New car sales, depending on where you live, often have a variety of taxes and fees that are avoided when buying a new car. Furthermore, due to the higher cost of the car when buying a new car, the amount of money that you spend on insurance each month will be higher with a new car as well.
4- Flexibility in Car Choices
Another reason why it could be a good idea to buy a used car is that you will have far more options and flexibility. When you want to purchase a brand new car, you will only be able to choose from one or two model years. When purchasing a used car, there will be a much wider range of cars to choose from. This means that if there is a particular model year that you are interested in, you will have the ability to choose it.
5- Vehicle Records
Another benefit of buying a used car is that you will have access to more vehicle records. Car owners are providing more and more detail on their cars today. This means that when you buy a used car, you can get more information about past accidents and repair records than ever before. This greatly reduces the risk of buying a car that is prone to breaking down. Further, if you buy a car through a car dealer, you may be able to get a warranty to cover the car for a period of time.
6- Negotiation Room
Another advantage of buying a used car, as opposed to a new car, is that you will have more room for negotiation. When buying a new car, car dealers often have a minimum price that they can sell the car for. These minimums are often much less defined when you are buying a used car. In fact, if the dealer has had a car on its lot for a while, they may be willing to offer a great deal just to get rid of it.
7- Lowers Carbon Footprint
When buying a used car, you could actually benefit by reducing your carbon footprint. It has been estimated that almost one-quarter of the car’s related carbon dioxide release takes place during the initial shipment. By buying a used car, you will eliminate the need for shipping one more new car, which will reduce the amount of carbon dioxide that is released into the environment.