This post contains affiliate links and I will be compensated if you make a purchase after clicking on my links
The advantages of buying a used car are big.
Did I say the advantages of buying used cars are Really big?
When you buy used, you set your self up for saving money both in the immediate purchase price and in the long term.
Between depreciation, taxes, and a few other associated fees, the money saved when you buy used is significant.
In general, unless you have money to burn, buy used!
Why? The advantages of buying a used car far outweigh the immediate gratification of buying something with that new car smell and extra shiny rims.
Actually, these days, you can still get the new car smell and shiny rims if you buy gently used.
Advantages of Buying a Used Car
Buying used makes sense on several levels.
To begin with, you save money in the short-term.
After all, a used car is always cheaper than a new car.
In addition, you’ll save money in the long run on fees, taxes, depreciation, and more.
Don’t let the term “used car” turn you away.
Buying used doesn’t mean heading to your local used car dealership that has the ratty banner and questionable selection.
You can buy gently used cars and get the best of both worlds – a nice car and a low price and a reliable local used car dealership.
Advantages of buying a used car – a lower-Price Tag
One of the major advantages of buying a used car is the initial purchase price of the car itself.
Purchasing a car that’s just one or two years old can save you quite a bit of money in the short term due to depreciation.
Less Depreciation – more advantages of buying a used car
Speaking of depreciation, it’s not just a myth that new cars lose a significant amount of value as soon as you drive them off the lot.
Did you know that as soon as you sign the dotted line on your purchase agreement for your new car, you’ve lost thousands of dollars?
Just the act of leaving the dealership parking lot immediately and drastically reduces the value of your shiny new car. Le sigh!
CNW Marketing Research shows that the average price of a new car in 2008 was $25,536 before taxes and fees.
Today, that same car in pristine condition would only be worth about $13,000.
Hold your breath because that’s a 50% loss of value.
If you’ve had any sort of accident, even a scratch, the value will be even less.
Of course, you’ll face depreciation no matter what car you buy.
However, a used car – even one that’s only a few years old – will cost you less in yearly depreciation than a new one. (happy dancing right now!)
Lower Registration Fees
In most states, registration fees are based on both the car’s value and its model year.
That rate is highest in the first three to five years.
Really, you can save around $1,000 dollars on your vehicle purchase if you buy a car that’s between three and five years old.
No Expensive Extras and Cheaper Features
Another of the major advantages of buying a used car is avoiding useless extras in a new car and cheaper features in a used car.
Dealers love to upsell when you buy new.
Pinstripes, optional interiors, and the good, old-fashioned “anti-rust coating” are all ways that dealerships try to eek a little more money out of you when you buy used.
They’re all more expensive when purchased through the dealership and add absolutely no resale value at all.
On the other hand, when you buy used, you can find all of those options in cars for far less than getting a few features when you buy new.
Rather than passing on that expensive navigation packages, sunroof, heated seats, and the like, you’ll be able to afford one or all of those features in a used car.
Speaking of useless charges, let’s not forget dealer fees.
When you buy a new car, you have to pay shipping, destination, and dealer preparation fees.
Sometimes, there are other fees, as well. Ugh!
When you buy a used car, the only fees you get socked with are the ones you’d have to pay on a new car anyway, name tag, title, license, and registration fees.
Condition and Warranty
Cars these days are built to last at least 100,000 miles – more if they’re well cared for.
When you buy a gently used car, it’s easier than ever to find a car in like-new condition and in excellent mechanical shape.
Translation: you’ll get a car for far less money that’s in great shape. It’s a total win.
Used Cars On Market
Remember, seek out, gently-used vehicles that are thoroughly inspected by expert technicians.
You need to get the best value for your money.
Also try to find a dealer that offers a 48-hour money-back guarantee, Carfax Vehicle History Report, and a comprehensive ROCK-Solid Warranty.
Ask if any of the vehicles even have a Lifetime Powertrain Warranty. You can’t beat that on a use car.
These tips will all help you find the best-used car on the market! ~ Dana XO