While buying a new car seems like an exciting opportunity with endless possibilities, but it also comes with its list of cons. Buying a used car has always come with a stigma attached to it, but what most people don’t realize is that a used car is a more financially sound decision than buying a new car, solely based on the depreciation value of each vehicle. A brand new car’s value depreciates the most in the initial years of purchase, whereas, if you buy a used car, you’ve already surpassed its depreciating period. In fact, you can sell it in a few years, for almost the same price that you paid for it initially!
Here is a look at some major benefits of buying a used car besides its slow depreciation:
Easier to Finance
Since buying a used car is so much cheaper compared to purchasing a new one, most people can easily save up and pay the entire upfront. Even if you choose to go the loan route, it is relatively easier to get an auto loan for a used car, that too with a lower rate of interest (compared to that of a new car).
Cars you see on the streets are way more dependable than the options one had a few years ago. In fact, they can easily deliver more than 100,000 miles before needing any drastic or major repairs.
Now, if you can see that a used car has clocked in a certain amount of miles, you can easily judge its reliability.
All cars require regular maintenance like tire rotations, oil changes, and brake checks. But today’s cars (yes, even used ones) give you longer driving time between these scheduled maintenance visits.
Lower Car Insurance Rates
Cars that are worth less cost less to insure with collision and comprehensive insurance. In fact, you can save more by dropping the collision and comprehensive coverage if you wish to.
Cheaper Registry Renewals
The cost involved in registering a used car goes down with each passing year.
Cheaper to Move up To the Luxury Class
Since buying a used car is cheaper, you can easily move up in class and shop for the luxury car you’ve always dreamt of owning.