Money Advice

Why Buying a Used Car Makes More Sense Than Buying New?

January 9, 2020 by admin in Money Advice, Saving Tips, Tips

If you are in the market for a new vehicle, likely you may be torn between investing in a new car or saving a bit of money and buying a used car. Many people are put off buying used cars because of the horror stories they have heard about buying a used car that then broke down or had various issues that weren’t apparent at the time of buying. However, if you make sensible decisions, like buying a used car through a reputable dealership like Allen Honda, there are a lot of reasons why it is better than buying a new model.

Let’s discuss some of those reasons.

Save Money

Okay, so we will start with the most obvious reason for buying a used car instead of a new car – it saves money. If you are willing to put up with the fact that you won’t get that new car, just rolled out of the factory or dealership smell, then you will make huge savings on your next vehicle purchase.

A Decrease in the Rate of Depreciation

As we all know, cars depreciate almost immediately after they leave the forecourt or factory floor. It is one of the things that go hand in hand with buying a car. However, that depreciation slows down and the depreciation in a vehicle that is a minimum of three years old or more is a lot less than a completely brand-new vehicle.

Vehicles Are Designed to Last And Stay Reliable For Much Longer Nowadays

Following on nicely from the point above, the fact is that modern cars, trucks and other vehicles are designed and manufactured these days to stay roadworthy and reliable for longer. That is why we have seen an increase in the average age of vehicles driven on US roads to 11.6 years and that number is rising every year.

Lower Car Insurance Premiums

One of the things that often sting car owners is the insurance premiums you need to pay on top of the price you are paying for the car. Although you may think the best way to save money on insurance is by buying a new car, as it eliminates the risk factor, it could still be best to buy a used car. As one of the main factors that determine the cost of insurance premiums is the car’s value, if you really want to avoid huge insurance rates, then it may be best to invest in a used car.

Better Cars To Choose From than You Could Afford New

Making a compromise and buying a used car could mean that you get a much better car than you would get if you bought new. So, rather than investing in a cheaper new car, why not spend less on an affordable better model. This, to us, feels like one of the big no-brainers of why it’s best to buy used over new, but that’s just our opinion.