While investing in a new car is very exciting, you should probably take a cold, hard look at how much you could actually save on the buy by investing in a used car instead.
However, the real saving grace in buying a used car is wrapped up in a rather sinister-sounding financial word: depreciation.
Here’s why you should consider investing in a used car.
Reliability
Cars haven’t been more dependable than they are today and it’s not uncommon for some cars to deliver more than 100,000 miles before needing any major repairs.
Maintenance
All cars need regular maintenance like oil changes, tire rotation, and brake jobs. You can still drive today’s cars much farther in between scheduled maintenance visits, with even tires and brake pads lasting much longer than before.
Lower Car Insurance Rates
While a used vehicle is worth less, it also costs less to insure it when you’re buying comprehensive coverage. You can also choose to drop collision and comprehensive coverage, which will pay for repairs to your car, and save even more.
Move to A Luxury Car
Since you can save 30% or more when buying a used car, you can shop in a higher class of cars.
Here’s why you should consider investing in a new car:
New-Car Shopping Is Easier
Every new car is assumed to be perfect, so evaluating its condition isn’t a factor so there’s no need to take it to a mechanic. It’s also easier to figure out what you should pay for a new car, even though the negotiation process could still be a pain.
More Financing Options
Carmakers offer plenty of incentives to bring in buyers, such as cash rebates. New car loans now also have better interest rates which means you’ll likely pay thousands of dollars less than the intimidating sticker price once you negotiate a final price and apply the incentives.
Advanced Technology
With features for comfort, performance, and safety being introduced in new cars every year, you’ll need to wait several years to get the same advancement in used cars.
Prestige
Let’s just say you won’t be hearing many people bragging about the used car they just bought.