The feel and smell of a new car are what makes it irresistible to many car enthusiasts. It becomes more enticing to have one when you hear a salesperson says that there is no down payment needed to drive it down the road, or that there is no need for you to pay for the first six months. How cool is that, right?
However, did you know that a brand-new car costs you more than you know? Well, fortunately for you, you have another option of having the vehicle that you want without getting trapped in overpaying for a brand-new one. What is it? It is buying used cars. It may be ruled over practicality, but you know what, there are more reasons other than being practical and we have broken down each piece of advice for you to go and decide if you should consider a second-hand car.
Here are six reasons to persuade you why having to buy used cars is the best (and smartest) decision you will ever make.
#1: Check the Numbers
If you want to be thoroughly convinced about your decision, check the numbers. Numbers are a concrete representation that gives a good glimpse of your target vehicle. According to a US survey, an average loan for a brand-new car is about a whopping $30,000 to pay in 60 to 68 months. With this vast amount, you need to pay around $500 each month.
Now, if you want a smarter option, you may want to consider buying a used vehicle. The average loan is about $19,000 for about 58 to 63 months. The average payment you have to make for a used car loan is about $350 per month. Compared to having a new car, a used car option is cheaper by about $11, 000.
#2: Overcome Depreciation
Depreciation is one of the most dreaded challenges that brand-new car owners face. A brand-new car depreciates for as low as 11% of its original value as soon as it leaves the car seller’s property. Once the vehicle reaches its first year, its value decreases by around 15 to 25%. Moreover, it depreciates by approximately 60% from its initial value five years after its purchase.
Why should you consider this? It is because if you decide to sell or exchange your vehicle for another car in ten years, its value depreciation is a significant financial disadvantage on your end. Additionally, it also affects your car insurance. You can only get as much as what it costs on the date of the accident and not based on its original value.
#3: Assess the Balance
One of the many worries that used-car shoppers have is acquiring a lemon. A lemon car is something substandard with its quality, safety, and utility. If you have to buy used cars, find a vehicle that is below five years old. While depreciation starts in its first year, take note that the most significant toll on its value happens after its five-year mark.
But, if you are keen on having a specific year model, you can still save a ton of money if you score a used car that is within its five-year mark.
#4: Low Car Insurance Cost
One of the critical factors in deciding what affects car insurance cost is the current value of the vehicle. Since a second-hand car costs less than a new one, it follows that the price of the insurance is lower. Imagine the amount of money that you can save because some criteria for car insurance can be crossed out. The risks for theft and new car depreciation has a low chance of being a rule in auto insurance.
#5: More Options to Choose From
You might think that buying a new car has a wide array of options for you, which is right for vehicles that have been released recently or those that have never been on the road. But if you are looking for an older model or you wanted a specific car that has been discontinued, you will end up buying a second-hand car. Purchasing used cars will give you much larger options, which can be vital if you are looking for something particular. You can still get a 90’s car today that is still in good condition if you do your homework and are patient enough to look.
Plus, more to the vast array of options that used cars can give you, you can expect that parts for the vehicle are readily available in the market. A second-hand car is ready for you to purchase as compared to buying a new one because second-hand cars were manufactured first, which means parts are readily available. While parts for brand new cars usually come in a little later.
#6: Stretch Your Budget
You can get more value for your buck when you buy a second-hand car. It is one of the best benefits of buying a used car compared to buying a new one. A two or three-year-old car will fit your budget over the brand new luxury car you are eyeing. Though it is considered old, car manufacturers no longer redesign their models every year, so that means your friends and family do not have to know you did not buy a new car. More so, cars nowadays can run up to 200,000 miles, so the durability of the cars has improved unlike before when a vehicle has reached the 100,000-mile mark and is considered done.
The idea of owning a brand-new car is tempting. But, if you have your eyes set on a goal and a specific vehicle, you may want to consider going for the cheaper and smarter option of having used cars. Buying a second-hand car will be a lot less crisp than the new one, but it will still make you happy if you put in the necessary work to find the best deals in the market. Search, assess, and buy used cars that are within your standards. At the end of the day, you will be happy driving your dream car without the need to empty your pockets.