Looking for a new car? While it might be tempting to look at a shiny brand new car, you will find that it makes a lot more sense to buy used instead. This post will look at a few of the main reasons why it is better to buy a used car instead of buying new and how it will prove to be a smarter financial decision. Keep reading to discover the main benefits of buying used.
Less Vehicle Depreciation
Perhaps the biggest argument for buying used is that there is less vehicle depreciation. New cars lose around a third of their value in just the first year and often over 50% after three, which means that you would be taking a massive financial hit if you buy new and sell a few years (or even a year) later. The rate of depreciation slows after three years, which means that you do not have to worry so much about losing money when the time comes to sell.
Lower Insurance Costs
It is also usually a lot cheaper to insure a used car compared to a new one. Car insurance is a major cost to cover – especially for new and/or young drivers – so many look for ways to make savings here. Used cars are generally cheaper to insure because they are less valuable than a new car, so they will not cost insurance companies as much if you have to make a claim.
Lower Dealership Fees
If you have ever bought a new car before, you will be aware of the sting in the tail of dealership fees. In addition to the cost of the brand new car, you are also slapped with various fees that can add up to a fair amount. You will find that most franchised dealers and independent dealerships for used cars do not charge any fees, so this can save you a fair amount and a nasty surprise.
More Bang for Your Buck
Another important consideration is that you can get more bang for your buck when buying a used car. Your money will go a lot further in the used car market, which means that you can drive away in a high-quality car. As an example, you could find a used Vauxhall Corsa for sale at affordable prices in the used car market, but this would cost a lot more if you were to buy new.
As you can see, it makes a lot more sense to buy a used car compared to buying new. From a financial standpoint, a used car is a much smarter purchase as they are cheaper to buy and run, you do not have to worry about depreciation and you can get a lot more for your money in the used car market.