Why New Car Incentives Can’t Beat Used Car Prices

October 7th, 2014 by

happy woman receiving car key - find a used car

It’s clear that in our current economy, Americans are looking for quality and value when they buy. This has automotive dealers constantly trying to one up each other in terms of reliability, performance, style, and efficiency.

That kind of competition between car producers has huge benefits for consumers. Vehicles are lasting much longer these days, and owners are shelling out cash for repairs far less often.

Still, paying full price for a new vehicle can be overwhelming and may leave you wondering if the price tag was worth it.

Take things in a different direction. Because cars are being made so well, it’s even smarter to pick up a model that’s a few years old, but in great condition. Find a used car and hold onto your savings.

Used Cars Won’t Lose as Much Value

A vehicle loses the biggest chunk of its value the moment you drive off the lot. You paid retail, but by the time you pull into your driveway, your shiny new car is now valued at the wholesale price.

Then it continues to depreciate by about 20% each year. You paid a significant amount of money to own it. Why should you be left without anything to show for it?

There’s a better way. You can buy a used but recent model with low mileage. Because the original buyer took the brunt of the value loss upfront, you don’t have to.

You can enjoy a car that’s close to new without having to gulp when you consider what you paid versus what it’s worth.

Used Cars Cost Less to Insure

Avoiding major loss in value is not the only perk of buying used. In general, your purchase costs will be significantly lower. This allows you to stop worrying over high payments, and it allows you to spend your money on other things you need.

Insurance is one cost involved in purchasing a vehicle that can really knock the wind out of your sails. But it’s far less expensive to insure a used car than a new one.

Because you’re paying to insure the current value, your premium will come in significantly lower on a  vehicle that’s a couple years old.

Used Cars Often Run Like New

There are plenty of fantastic late-model options that you can explore when you’re buying a used car. Do some research to narrow down your top picks, and then test drive them.

It’s often the case that a used model will feel brand new when you drive it. You can also rest assured that used car dealerships typically check incoming vehicles rigorously for any issues before putting them up for sale.

Many drivers lease or buy new cars, but then they upgrade within a few years. You can get more value and save on your down payment, insurance, and monthly payments by taking advantage.

If you want to save big, do your homework, and then visit a used car dealership near you to find the perfect vehicle.

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