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November 29, 2017

Why Buying a Preowned Car Is a Better Economic Decision Than Buying New

Buying a Preowned CarWhen deciding what car is right for you, it can be tempting to give into that new car smell and shiny new exterior. However, many financial experts have proven time and time again that purchasing a new car is not nearly as financially savvy as buying a used vehicle. Sure, you won’t get the joy of owning a sparkling vehicle fresh off the lot, but the economic advantages of purchasing a pre-owned car can be significant.

Not convinced? Here are some things to know before you decide on a new car instead of a reliable used one.

A New Car’s Value Depreciates As Soon As You Drive It Off the Lot

After just one year of driving a brand new vehicle, it will have depreciated around 30 percent in value. That means if you paid $30,000 for your car, it will only be worth a little over $20,000 after 12 months. On the other hand, used cars don’t depreciate nearly as quickly (probably only a couple thousand dollars every year or so). Pre-owned vehicles are better at maintaining their value, and you won’t feel as ripped off after a year or two of driving them.

An Old Car Might Be Just as Reliable as a New Car

Cars in today’s world are being built to last, so you don’t need to worry that a pre-owned vehicle will fall apart shortly after purchasing it. There are very few risks that come with used cars, so don’t let others tell you that new cars are more reliable. Even buying a car with more than 100,000 miles isn’t necessarily a bad idea with today’s technological advancements. Chances are, if you go with a dependable car brand, your used car will be just as reliable as a the newer version that’s triple the cost.

You Can Shop for More Luxurious Cars If They Aren’t Brand New

Want some leather seats and a heated steering wheel, but limited by your budget? You might be surprised by the high-end vehicles you can afford if you start shopping for pre-owned cars instead of new ones. At a new car dealership, your budget might make you go for the most basic model, but with a used car seller, you might be able to find some upgrades for very little extra cost. Plus, new car sellers will nickel and dime you for everything they can, but most used car sellers won’t.

Auto Insurance for Pre-Owned Cars Is Usually Cheaper

Because your used vehicle will be worth less, you won’t have to pay as much to insure it. That means one more budget-friendly change in your life. Even if you’re just saving an extra $50 each month, that’s roughly $600 in a year that will go back into your wallet. Additionally, you might be able to get better coverage for a more reasonable price, so you won’t have to worry as much about fender benders or other accidents.

Registration Fees for a Used Car Will Be Cheaper

As cars get older, they get less and less expensive to register with the government. Sales tax will also be a little lower with a pre-owned vehicle. Who doesn’t want to save a little extra when they can? After all, those seemingly insignificant fees can really add up and throw your auto budget out of whack.

Smaller Price Tag Means a Smaller Auto Loan

Because you won’t have to finance as big of a sum with a used car, you won’t have to pay off your vehicle for as long. Plus, you will accumulate less fees from interest, which means saving even more when all is said and done. No one wants to spend years and years paying off a new vehicle after it’s already lost its flair, and if you are not careful, you can end up spending a hefty amount on interest fees after financing an expensive new car. Keep things simple: buy a cheaper call, take out a smaller, more manageable loan.

There Are Plenty of Statistics Available on the Used Car You Are Purchasing

When you buy the newest model of a car, you don’t always have all of the information you might want. The model hasn’t been tested for long by actual consumers, so you might not be aware of all its flaws. When you go to purchase a used car, there are many more reviews and statistics available online. You can find out exactly how reliable the brand and model are and feel more prepared when you fork over the payment.

You Get More Bang for Your Buck Overall

Between saving money on the car itself, insurance, registration fees, taxes, and more, it’s pretty clear that you can stretch your dollar further with a used vehicle than you can with a brand new car. Unless that new car smell and the bragging rights that come with purchasing a vehicle fresh off the lot are important to you, you’re better off spending your money on a trust pre-owned vehicle. It’ll cost less up front and save you bundles over the course of your driving.

When searching for a used vehicle from a dealer, consider turning to a company like PAACO. They can help you find the perfect pre-owned car for your budget and needs. Plus, all of their vehicles undergo a thorough inspection, so you can be sure that your used car will be extremely reliable. Ready to start searching for your ideal vehicle? Call 877-810-4555 or visit today to learn more!

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