There are many benefits to buying a used car. For one, used cars are much cheaper than their brand-new counterparts. According to Autotrader, the average price of a new car is $37,285, while the average price of a used car is $19,589. That’s a savings of over $17,000! In addition, used cars don’t depreciate as quickly as new cars. So, if you buy a used car that’s only a few years old, you can save even more money.
Here are some more benefits of buying a used car:
You Can Get More Car for Your Money
When you buy a new car, it loses 11% of its value as soon as you drive it off the lot. After one year, it will have lost an additional 19% of its value, and after three years it will have lost 47%. This rapid depreciation means that your new car will be worth significantly less than you paid for it just a few years down the road.
However, when you buy a used car that’s 3-4 years old, you can avoid this rapid depreciation. The result? You get more bang for your buck!
Used Cars Are More Reliable Than Ever
In the past, buying a used car was risky because you never really knew what kind of condition the vehicle was in. However, these days most used cars are still under manufacturer warranty, and many also come with certified pre-owned programs that offer extended warranties. As a result, buying a used car is now just as reliable as buying a brand-new one—but at a fraction of the price.
There Are More Options Than Ever Before
These days there are more used cars on the market than ever before. Due to the current economic conditions, more used cars are entering the market every day. As a result, there’s no shortage of options when it comes to choosing a used car. Whether you’re looking for a sedan or SUV, there’s sure to be a used car out there that meets your needs.
Is Buying a Used Car Right for You?
Of course, there are also some drawbacks to buying a used car. For instance, if you buy a lemon or a vehicle with hidden damage, you could end up spending more money in repairs than you would have if you had just bought a brand-new vehicle.
It’s always good to pay cash for a used vehicle, but if you don’t quite have enough to cover the cost of a used car, there are many affordable loan options available. My Auto Loans has many options for low interest loans (loans are less than 2 percent interest rate at the time of writing this article, although those rates are always fluctuating). It makes sense to finance a used car if you can get a great interest rate. Check out their free online calculators to see if it makes sense financially to get a loan for a used car.
Check the Vehicle Identification Number (VIN)
To avoid this potential pitfall, it’s important to do your homework before making any decisions. Start by checking the vehicle identification number (VIN) to make sure the car has a clean history and has not been in any accidents. You can also take the car to a reputable mechanic for an inspection to ensure that it is in good working order. By taking these precautions beforehand, you can rest assured that you’re getting a quality vehicle that will last for years to come.
Save Money on Car Insurance By Buying a Used Car
What many people don’t realize is that the type of car you own can have a big impact on your car insurance rates. If you’re looking to save money on your car insurance, buying a used car is a great option. Because used cars are worth less than new cars, they’re much cheaper to insure. You can easily compare insurance rates for different types of cars using an online car insurance calculator. And in most cases, you’ll find that buying a used car can save you hundreds of dollars per year on your car insurance premiums.
When done right, buying a used car can be an extremely wise financial decision—one that can save you thousands of dollars off the purchase price of a brand-new vehicle. Just be sure to do your homework first and inspect the vehicle thoroughly before making any decisions. With these tips in mind, finding and financing your perfect used car will be easier than ever before!
Erika Finn, founder of Stacking Acorns, is an attorney who graduated from law school at University of California, Berkeley. She was a member and editor of the California Law Review and won the Prosser Prize for Legal Accounting. She holds a Master’s Degree from the University of Southern California (USC) and a Bachelor’s degree from Indiana University- Bloomington. Stacking Acorns is a personal finance website for women by women. We help mid-life women achieve financial freedom through real estate investing and other streams of passive income.
