Many people buy used cars due to financial constrain, but an in-depth look at the market shows that this is a clever decision from many points of view. Unless your budget is unlimited and you have excellent credit, there are more reasons to buy a pre-owned car than a new one.
Here are five excellent reasons why buying a pre-owned car can be an excellent decision.
1. Lower Purchase Cost
New cars are much more expensive, and they depreciate quickly, losing 30% of their value in the first two years. This is a significant drop in price considering that a two-year-old car is usually in excellent shape. If you’re on a budget and don’t want to pay many tens of thousands of dollars for a car, you can save a lot of money by turning to the used-car market.
2. Little or No Drop in Value
In the past, the difference between a three or five-year-old car and a new model was glaring because technology and safety features were advancing quickly. Nowadays, the difference between new cars and older ones is not as stark. Innovations in the auto industry are rare today. Thus, a pre-owned car offers remarkable value and can serve you just as well as a new one.
3. You Get More for Your Money
Maybe the cost of your favorite car is prohibitive when you consider buying it new, but secondhand it can fall right within your budget. By looking at used cars, you can afford to consider higher-end models that otherwise would be well outside your price range. Check King of Cars Texas to find your favorite luxury car at a price you can afford.
4. Minimal Depreciation
A new car starts depreciating the moment you drive off the lot, and it suffers a dramatic loss in value in the first year of ownership. So, buying a new car can make you lose money, especially if you plan to sell it in a couple of years. Because depreciation flattens out after a car’s second year, purchasing a two or three-year-old car is a smart financial choice.
5. Great Variety
The car industry has a few hundred car models on the market each year. The used-car market, however, is much more varied. If there’s a car that you’ve always wanted and that isn’t made anymore, you have a great chance of finding it at a used car dealer. Maybe you want a retro car, or you want to purchase a car you’ve owned before. Perhaps you want to test-drive many different cars before making a choice. A used car dealer is a much better choice for exploring your options.
There are many advantages to buying a pre-owned car. Having doubts about used cars was justified in the past when cars had a shorter lifespan, and technical problems were a much bigger worry. But today, the differences between new and secondhand cars are minimal, so the price difference is not always worth it. Do your research and choose a car that’s in great shape so you can avoid high maintenance or repair costs.