Buying a car is an enormous investment, requiring time, attention to detail, and research to get the process exactly right. Before heading to the dealership, you'll need to know your budget, your specifications, and a few makes and models worth considering. And, of course, whether you'll be shopping for a new car or a used car.
As a car buyer, one of the biggest decisions you'll face is deciding between new and used. New cars definitely offer that certain allure; as the first owner, you can customize any detail, from color to features, to ensure you get the car you truly want. When a new vehicle isn't in the budget, however, taking a look at your used options may be a better alternative. When you're on the hunt for the car of your dreams, here are four great reasons to buy a used car.
One of the biggest advantages to a used car is the price. Used cars are substantially cheaper, often costing thousands less than their newer counterparts. When you don't have 20 or 30 grand to sink into a car, an investment half that amount can get you a great car in good working order. Used cars come in an option for every budget as well; a two year old luxury and a 10 year old Honda Civic will both get you where you need to go, with substantial savings off the list price.
Have you ever heard someone say a car loses a few thousand dollars in value as soon as it's driven off the lot? It's true. Cars depreciate very quickly, especially initially. On average, cars lose 20 percent of their value in the first year, making a used car a great deal, especially for a model that's only a few years old. Buying used can save you thousands, as well as give you an investment that will hold its current value for much longer.
Wider Range of Models
Buying a new car is very exciting, but it can often be very limiting. New cars are only available in the current year's offerings, which is great until you realize your preferred car maker discontinued your favorite model. When shopping for used cars, you have access to virtually everything that was produced over the last 10 to 20 years, granting you a huge range of vehicles to choose from at virtually any price point. If you can't have a new GMC Acadia, at least you can enjoy one that's only a few years old.
Lower Car Insurance
If you're tired of paying a small fortune for car insurance, purchasing a used car can ease the burden. In general, new cars are more expensive to insure as they are more valuable and will cost the insurance company more should something happen. Since used cars have a reduced value, the liability they pose to an insurer is likewise reduced. This may not extend to all used cars, however; a significantly older car with high mileage and out of date safety features may not give you the savings opportunities you're hoping for.
Shopping for a car can be extremely challenging, but when you have an idea of what you're looking for, the process can be a lot smoother. Buying a used car offers many advantages, ranging from a lower price to reduced car insurance, offering you the best of both worlds: a great way to save, and an upgrade to your current ride.