10 Reasons Why Financially Savvy Car Owners Always Buy Used

It is all too easy to be tempted by a shiny new car in a showroom. Financially savvy car buyers know that it is wise to resist the temptation to buy a new car rather than a used one. One of the biggest reasons is cost. You will obviously pay top dollar for a brand new vehicle, which also means the monthly payments will be high too. Add in the fact that new cars depreciate by as much as 25% in the first year and you can quickly see that this is one of many valid reasons to opt for a used car instead.

If you search the inventory of used cars at a site like low book sales Salt Lake, you will appreciate how much car you can get for a sensible budget. Buying a used car is the no-brainer option. Here’s some compelling reasons why.

Let’s talk about depreciation

The salesman in a showroom who is trying to persuade you to buy a new car will be happy to talk about all the great features you will be getting and how you can even choose your own color and trim. What they won’t want to talk to you about is the amount of money you will lose on the deal through depreciation.

All makes and models of cars depreciate in value over time. It’s a fact of life. However, the steepest drop in value comes in the first year or so. Some cars can lose as much as 40% in the first 12-24 months. After that, it’s a much slower rate of depreciation.

If you buy a used car that is a couple of years old, or more, someone else has suffered the financial hit on your behalf and you end up getting a lot more car for your money.

Enjoy driving your car with less stress

If you are driving a new car around it can always be in the back of your mind that if you have even a minor collision it could prove costly to repair. Even a relatively innocuous fender bender incident could cost you a lot more to repair. You will also want to get it repaired so you don’t spoil the car’s appearance.

On the other hand, owning an older car is less stressful. Firstly, You won’t be so concerned about a few minor dents and scratches. Secondly, sorting out dents and dings tends to be cheaper. Or you could just leave them and put it down to experience.

Get the make and model you want at a more affordable price

If there is a specific make and model of car that you really like there is always the chance that it is out of reach if the showroom price exceeds your budget.

Buy that same car a few years down the road and you will probably get what you want at a much more realistic price.

Warranties are still available

New cars come with a manufacturer’s warranty. You can still get that peace of mind when you buy a used car. Some used cars will still have some of the original warranty left, or you can purchase a used car warranty if you want.

If you like the assurance of a warranty you can still get that peace of mind with a used car.

A bit of history makes it easier to evaluate how good your used car is

Buying a new car is a journey into the unknown. You have no idea about the reliability and performance of the car as it hasn’t got any history.

Buying used allows you to see what repairs it has needed and whether it has been serviced properly. This makes it easier to work out how good the car is. This should also save you money in the long run too.

Keep your insurance costs down

It stands to reason that if you buy an expensive new car it is going to cost you more to insure it. Every insurance company takes the value of your car into account when quoting your annual rate. Paying less for a used car also means that you will save on insurance costs at the same time.

You could enjoy lower registration fees

Depending on where you live, some states base their registration fees on the value and year of manufacture. The fact that your used car will be less valuable than a new one will mean that you benefit from lower registration fees.

More opportunities to haggle when buying a used car

Many new car dealerships have to operate on thin profit margins. This doesn’t give them much scope to discount the price, even if they want to. On the other hand, there is often more room for negotiation when buying a used car.

This general flexibility in pricing is another strong reason for choosing to buy a used car. It gives you a significant financial advantage and can often allow you to strike a deal that delivers the best value for money. It is so often the case that you get more bang for your buck when you go down the used car route and try to negotiate the keenest price possible.

Extra fees can soon add to the price of your new car

With very few exceptions, the price being asked for a used car is much more transparent than when you are buying a new car.

There are all sorts of add-ons with new car purchases. Delivery fees, administration and arrangement fees, finance charges, the list is almost endless. You avoid the majority of these additional fees when you buy a used car.

Buying used can be better for the environment

Not only will you be saving yourself money when buying a used car over new, you will also be creating some environmental benefits with your savvy financial decision.

Producing a new car expends a considerable level of energy and raw materials. Buying a used car helps reduce the demand for new vehicles and this has a positive environmental impact.

Once you see how all the benefits of buying a used car stack up you will appreciate why the decision to choose this option is such a smart move. Start searching for a used car and see how much car you can get for your money.