Cars are one of the greatest investments you can have. However, when it comes to buying cars, you might identify one new one that you like, but some factors make it hard for you to get it. Well, don’t give up just yet.
You have the option of getting a used car. While many people don’t love the idea of buying a used car because it may have covered a long mileage or because it may be worn out, there are numerous advantages to getting a used car instead of a new one. If you are in the process of getting your driver’s license and this will be your first car ever, you definitely want to think about safety being the first priority.
1. It is cheaper
This is perhaps one of the biggest advantages when buying a car. You get to save a lot of money in so many ways. The first is that the car will not be as expensive as it was when it was new. You can save up to 50% of the original car value by buying it after it has been used.
Auto insurance is another place where you get to save some money. The premiums and the rates will be lower than those of a new car because they are affected by the age of the car.
2. Lower loan amounts
Because of the lower prices, you do not need to borrow a lot of money to finance your used car. Just like motor insurance, loans are affected by the age of the car. Fewer loan amounts translate to less monthly payments and less interest rates.
That, in turn, means that you can pay off the loan in a short while. Also, you do not have to place a lot of money for the down payment before getting the loan, meaning that you can easily afford it.
Getting pre-approved for smaller loans is easier and faster, meaning that you will most probably get your financing. That is unlike when buying a new car when you might not because the amount is large.
When buying a new car, you need a lot of money for one specific car model. It gets worse when you want a specific car model, but one with some upgrades, because it costs much more money.
However, when buying a used car, you have all the options before you, and they are all a lot cheaper than they would have been being new.
For a certain amount of money, you can get a lot of used car options to choose from, and you might even get your dream car, but for half the amount.
You also don’t have to settle for very old vehicles, because you could search for less driven cars or cars that are still in their best condition.
4. You don’t take a great depreciation hit
Cars are one of the things that depreciate very fast. Just on the drive home, a car’s value could depreciate by up to 11%. Within weeks and months of driving it, the value of the car might have reduced by up to 25%.
With time, however, the depreciation rate reduces, meaning that the car could have the same value for several months. By buying a used car, you do not take a great depreciation hit because the owner took it first.
When you buy the car, it might still have its value for the next few months.
We all love having a good long warranty for the things we buy. When you buy a used car from a car dealer, you get a warranty from them. Therefore, you do not have to worry about the car failing in your hands because you could have that sorted.
You might also be lucky enough to find a car whose original warranty from the manufacturer is still valid, which gives you a double advantage. That means that any problems with the car can either be fixed by the manufacturer or the dealer, and of course, you will want the manufacturer.