Advantages of Purchasing a Used Car over a New Car

Dodge the Depreciation

When you purchase a brand new vehicle, it is inevitable that the very second you drive it off the dealership lot, it can depreciate up to thirty percent of its value. That alone puts you upside down in your new vehicle if you have financed the majority of the price of the car. Not only that, but the brand new car continues to depreciate over time, and after just the first year of owning your brand new vehicle, it has lost as much as forty percent of its value.

You do not face this fate when you purchased a used vehicle, as this only happens at the first sale of the car. When you have a vehicle that depreciates faster than you can pay off the loan for it, you will need to obtain GAP coverage, which is another payment you will need to obtain on top of the payment you already have incurred. GAP insurance is used in order to cover the ‘gap’ or difference when the loan amount is more than the actual value of your vehicle should your vehicle be totaled.

More Options and More Prices

Often, someone will take a liking to a particular model’s style just to see it be redesigned into a newer model. Attributes can be restructured and redesigned so that the newer year or year(s) of the vehicle no longer look like the older models. You will have a difficult time trying to track down a brand new car of a particular make and model of a specific year. When you buy a used vehicle, it is that much easier to find the exact make, model, and year that you desire, and many choices within that. If you think about it in terms of inventory, buying used has no end, because vehicles are constantly be resold, so the options from which to choose are endless.

In addition to the variety in vehicle choice, you also have the added advantage of a huge variety in the price you want to pay for a used vehicle when new vehicles typically are priced similarly with little variation and options. When you have a specific budget or credit issues, when you buy a used car you will not be pressured into paying more than you wish to the same way you would be pressured to do so when purchasing a new vehicle.

Another noteworthy point about money when it comes to purchasing new and used vehicles is the fees that come along with it. Typically, there are more extra hidden fees tacked on to a new car purchase at a traditional dealership then there are with a used vehicle from a smaller used car dealership or private party. Buying used can help you dodge those initial hidden fees that you are stuck with when you purchase a brand new vehicle.

You will have a greater span of flexibility in your choice of the condition of the vehicle when you buy a used vehicle. If you don’t have a problem with a few dents and scratches, you can find a killer deal on a used car. You also have the opportunity to fix minor cosmetic issues at a lower price point post-purchase then you would be paying in an increased price for the car after the minor cosmetic repairs have been made. For anyone looking to add customizations to their vehicle, when you buy a used car, the price for adding extra customizations decreases. It’s much wiser to purchase a car and then add the extra bells and whistles post-purchase because you will pay significantly less than if they are included at the initial sale in a higher sale price.

You Have More Experience to Rely on

The longer the length of time that a specific make and model has been on the market and driven naturally provides more time for things to come up like defects, recalls, or problems. After a number of years, there has been enough experience with the particular make and model that you will be able to easily know if it has or had not had problems.

When you purchase a new car, there are much fewer people who have had time with that make and model of car to establish it as problem free or problem prone. You simply run the risk of not knowing of bugs and defects that will cause recalls when you purchase new.

When you purchase used, all that information is available to you right away. You are able to be wise with the vehicle you choose because there is more information about the experiences other buyers have had with the make and model of vehicle. It is very simple when you break it down, there is just more data to look at when you are looking through used cars then there is with new cars.

Insurance Rates Are Lower

When you get insurance on your vehicle there are a number of things that your insurance company will look at with different weights to determine your insurance rate on that vehicle. It is common sense that the biggest thing taken into consideration when determining how much you will pay to them for your insurance is the value of the car. When you buy used, your car will not be as monetarily valuable then if you bought the same car brand new. Therefore, in that respect, if something should happen to your brand new car, the insurance company will be paying out a much higher amount, which in turn makes your insurance rates skyrocket.

When you buy a used vehicle, it will cost the insurance company less to repair and or replace it should something happen to it, and it will cost you less when you pay the insurance premium. When it meets the eye, you may not be able to discern the differences between your 2013 Lexus from your 2016 Lexus, but rest assured that your insurance company definitely would. It is due to the concept of depreciation that this happens when insuring a vehicle, and this can be a key advantage of buying a used car in Independence.