If you are in the market for a car, you might be wondering if you should buy a new or used car. There are many benefits to both, but for most people, buying used is ideal for their current situation. Here are some reasons why buying a used car is such a good idea.
1. Better Price Initially
One of the main reasons that people choose to buy used is because you can save a ton of money upfront on the price of the car. When you buy brand new you are paying a good chunk of money to be the first person to ever use the car. Thus, the moment that you drive off the lot with your car, it depreciated in value. That is not the case for a used car. You know that the price that you pay for the car in the beginning reflects what the car is worth, so it will be less expensive than if you were to buy used.
2. Better Resale Value
Because the initial price of the car is so good, the resale value of the car is also very good. When you buy new you know that when you try to sell it, you will lose more money than just normal depreciation. This is because you paid upfront to have a new car. Instead, with a used car, you have already factored in the depreciation of the new car, so now what you paid for it will be what you could turn around and sell it for immediately. Naturally as you use the car over time, it will depreciate more, but it will be more reflective of what the car is worth.
3. Save Money On Insurance
One thing many people do not think about when purchasing a car is that you will have to pay for taxes, registration and insurance. The newer your car the more you will pay in insurance and taxes. This means that if you choose to buy an expensive, brand new, foreign made car, you will pay a lot more to insure it than if you got a reasonably priced car that has been pre-owned. Thus, buying used won't just save you money upfront, it will also save you money over time as you pay for your insurance and renew the registration and taxes.
By understanding why you will save money if you buy used, you can decide if buying a used car is right for you.