The Benefits of Buying a Used Car
The Benefits of Buying a Used Car
Posted on December 8, 2021
Used cars often get a bad rap, but the truth is that used vehicles have the potential be great investments. If you are in the market for a new car but either don’t have the money to buy a new-new one or don’t want to finance a new model, a used car may be just what you need. Here are just a few reasons buying used may be the best investment you make:
Minimize Deprecation
The minute you drive a new car off the lot, it depreciates in value. A vehicle that is just two years old depreciates as much as 45 to 55 percent. This can be disheartening for someone who spends $30,000 on a vehicle only to realize that they can only get $10,000 to $15,000 for it in the future. If you want to minimize deprecation, purchase a used car that has already depreciated as much, or nearly as much, as it is ever going to.
Save on Insurance
The more expensive your vehicle is, the higher your insurance premium is going to be. If you want to keep your monthly expenses as low as possible, shop used cars. Not only will you save money simply by buying a vehicle of lower value, but you may be able to drop certain coverage, such as collision and theft coverage.
No Monthly Car Payments
When you buy a new vehicle, you’re looking at making monthly payments for the next three to seven years. That’s a long time for a vehicle that won’t be worth half of what you paid for it in two years. When you buy used, however, you can either pay for the vehicle in cash or finance it for a year or two. Either way, your monthly burden will not be nearly as great as if you were to purchase a brand-new vehicle.
Buy a used car can be a great investment when you shop smart. If you want to minimize deprecation, save on insurance and eliminate the dreaded car payment, shop used today.