5 Advantages of Buying a Used Car over a New Car
If you are planning to buy a car, you have the option to buy new or used. It is important for you to understand the benefits that come in deciding to buy a new or used car. Used cars have become a great option for many people because of the several advantages involved in buying them. Below are some of the major advantages of buying a used car over new.
Buying a used car offers the benefit of being more affordable compared to a new one. They are cheaper meaning that you will end up saving a lot of money in the process. If you are working on a strict budget, a used car will be more appropriate to suit your limited budget. The good thing is that you will be able to enjoy the pleasure of driving a luxury car by purchasing a used model. All what you need to do to enjoy this benefit is to check that the car is in the right condition to avoid buying one with a problem that might end up being expensive to handle later on. If there is an issue with an expensive component, you may be able to bargain with the owner or used car dealership to have this either replaced, or use it as bargaining power to further reduce the cost of the car. It’s therefore important to get a second opinion when buying a second hand car. This is an all too critical step that a lot of people ignore and ends up costing them in the long run.
Low Rates of Depreciation
A new car has a higher rate of depreciation compared to a used car. A new car depreciates at a higher rate than an old car and this is where you will gain. It is worthy to note that a car loses some value with each passing day and mile. The highest loss in terms of value usually happens during the first year. I am sure that you have heard many times that when you buy a new car, you lose a lot of value as soon as you drive it off the lot. With a used car, it literally doesn’t change! When you purchase a used car, you do not experience such a huge depreciation. In addition, there is lower mental depreciation because there is nothing to worry because of the lower rates of car depreciation involved. In short, as long as you buy a good used car or SUV, you will have peace of mind due to not losing a lot of money just shortly after purchase.
Lower Rates of Insurance
Just like it happens in financing, insurance rates are also impacted by the age of a car. When you buy a used car, you get the advantage of reduced insurance rates. This is because used cars usually tend to have lower insurance rates. All you should do is to perform some pre-purchase research in order to avoid the insurance sticker shock, regardless of the type of used car you buy. This may not apply to higher end vehicles or vehicles that are deemed too risky. Some cars could be on some kind of ‘black list’ so it’s best you check this out with your insurance agent before you buy. It’s only good practice.
When you purchase a used car from a used car dealership, you can usually have a warranty with the vehicle. However, you will need to note that this warranty usually comes with a specific limit and covers a specific number of miles that you drive within a certain period of time. Most of these warranties are third party, and have nothing to do with the dealership you bought it from. It would be a good idea to research the type of warranty online first, to see what people are talking about. An example of a popular warranty company used by used car dealers is Lubrico. Check them out.
Great Condition of Used Cars in Modern Times
It’s very seldom today that the used car you buy is in bad condition. Back in the day you’d see plenty of ‘rust buckets’ for sale. Nowadays or at least in the past 10-15 years, there have been many scientific advancements for rust control. Along with emphasis on reliability, it’s only in the car manufacturers interest to have a mechanically sound car. Many reviews are now available online, so you don’t want negative exposure. . In modern times, you might not even be able to distinguish a used between a new car. There are also a lot of options in the used car segment in most car dealers. You may be able to get a car that is in excellent condition, almost looking like new. This means that you will get value for the money you spend.