Whether you’re a first-time car buyer or a seasoned veteran there’s always the tough decision of deciding if you should go with a new or pre-owned vehicle for your next purchase. New cars have the latest style, tech features, low interest rates, and that much-loved new car smell but are they really the best choice for you and your budget? We’re going to overview some used car wisdom and give you 4 great reasons to go pre-owned on your next car.
1. They’re Less Expensive
Let’s get the obvious out of the way – in most cases you’re going to save money to buy your car used and probably quite a bit of money at that. Once you buy a brand-new car and take it around the block it’s no longer new and that value drops quickly. According to Consumer Reports your car new car on average will be worth 54% of the original purchase after just 3 years – that hurts!
The average cost of a used car is predictably well below that of a new car model and that’s not the only space for savings. Logically you’ll pay less taxes on a lower priced car and it’s often more affordable to insure them as well. However, you should take note of the vehicle’s mileage because the distance driven and the remaining warranty will likely impact your maintenance expenses.
2. Financing Rates & Terms
With low manufacturer financing rates and longer terms available dealers are able to show you some very attractive monthly payments on a new car but don’t forget to do the math. Even a lower rate can really add up over a 7 or 8 year financing term and the growth of certified pre-owned ( CPO ) programs has really narrowed the gap. Not only do banks offer aggressively low used car rates but certified used cars offer even lower rates still plus the added bonus of additional warranty coverage and extensive vehicle inspections. The new car advantage is really starting to fade with exceptional used car financing options available.
3. Vehicle History Reports
Maybe your hesitation about buying a used car is that you just don’t know where it’s been or what you’re getting and that’s understandable, but with transparent reporting using tools like CarProof you get a very good idea of what you’re dealing with. Vehicle history reports might not catch everything but you’ll usually get some essential information like
The number of previous owners
Any accident or damage history with details
Previous registration status ( Personal, Lease, Taxi, Rental etc.. )
Mileage validation and maintenance records
If you’re thinking it might be a risk to buy a used car because it won’t last long then you should do some research. According to several studies the average vehicle on the road today is over 10 years old and that numbers continues to rise as car manufacturers continue to improve their line-ups. Modern cars, trucks, and SUVs simply have a longer life-span than they used to and that’s great news if you’re in the market for a pre-owned vehicle.