Buying Used Cars Saves You More Money Than You Thought!

December 23rd, 2015 by

 

happy family shopping for cars

There aren’t too many times in life when you can buy an item used and still expect excellent value. Fortunately, for those of us affected by today’s tough economic climate, the big ticket items we all need can still be purchased used and come with excellent value.

Used cars for sale in Albany NY, provide a wonderful source of value in any budget that fits your needs. If you’re looking for a year old used car with very little mileage, you will find this vehicle exists for your purchase. 

Should you need a tiny little commuter car that is fuel efficient and can safely get you to and from work each day, that is also available. That’s part of the beauty of used vehicles, the supply, variety and costs are virtually endless. Whatever your needs may be, there will be a used car to fit your specific lifestyle.

Consider Used

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If you’ve only ever purchased brand new cars, sure this process can seem daunting and maybe even a bit scary. There are so many mental images that get conjured up when “used cars” come to mind, but those days are pretty much over and reputable used car lots are more than plentiful. You probably just don’t notice them because they don’t fit your preconceived notion of what one looks like. No worries. We’ll walk you through all the benefits of buying used and why it’s the right choice for you.

Lower Prices

The very first thing you’ll notice about a used car is price and more importantly, how it is significantly lower it is than its brand new counterpart. Even if this vehicle is only one-year-old with very little mileage, it’s going to be thousands lower for the simple reason that it isn’t sold to you directly off the brand new car lot.

Lower pricing is the number one reason why people purchase used cars. It is dependable, it is sometimes negotiable and it will always keep people returning to used car lots.

Sure, we all love that new car scent and feel special that we are the first to have ever sat in the driver’s seat of this brand new SUV, but will you feel so good making payments thousands of dollars more just for this feeling and the smell that will eventually fade away? Those things are fleeting, but the price tag is one you’re stuck with until it’s paid off. Price tags on cars, especially SUVs and trucks are going to be high regardless of new or used. Saving an extra couple of thousand by purchasing a recently used model is simply a smart move.

Here’s another option: say you can afford a brand new SUV, but base level trim. However, you’d prefer the higher trim level, who wouldn’t, right? You can find that same model but a year or two older and with the money you’ll save by not buying brand new, you’ll be able to afford a top trim model. Doesn’t that sound like the better deal?

Depreciation

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It may make very little sense to you that brand new cars should cost so much more than their slightly used counterparts. The main reason for this is because of depreciation.

Depreciation is the word used to describe something diminishes in value. Because brand new cars hold all their value, even a little more value simply because of their pristine condition, people are willing to pay more for that. Take it off the lot, even for a day, and it has immediately diminished its value because it can no longer say “brand new”. Those two words make all the difference. New cars continue to suffer from diminished value within the first couple years of their existence, but none of it is as great as it is the first time you drive it off the lot.

How big is this difference?

It varies, but it’s significant. Some cars lose up to 40% of their value during their first year. This means that you’re paying for that percentage, whatever it may be, just to say you bought your car brand new.

Paying so much extra money for something that you use every day, will carry your family around in and will most likely see food, toys, sporting equipment, beach sand, wet dogs, is that extra, let’s say even 10% worth agonizing over if the paint chips or a drink spills? The mental anguish that that comes from knowing you paid so much more than what the car is actually worth may not be worth it, at all.

Interest Rates and New Car Fees

So, already we’ve gone over the fact not only is the initial cost of a new car higher simply because it’s brand new, but also that you’re paying more because it hasn’t depreciated.  These two values already add up to a couple extra thousand. Ready for more?

Interest rates, as well as insurance rates, are going to be higher on a brand new car than on a used vehicle. Because new cars come at a higher cost, this also means it comes at a higher risk.

As is the case with any car you purchase, there are going to be fees and taxes when you register it with your local town hall and DMV. However, as you can safely assume, these fees and taxes are much greater when it’s a brand new car.

Insurance Rates

Guess what? Insurance rates go up, too. Because of it’s pristine condition, insuring this vehicle is simply going to cost more. Nothing has ever happened to it so the cost of repairing a brand new car is greater. Its newness means that its parts will also be newer, more specialized and not as plentiful which boils down to more expensive.

Better Variety of Choices

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So we’ve just learned that buying a brand new car is going to cost you so much more than a used car. That’s certainly all the reason some people need. However, in case you need some extra coaxing…

You will always have more options, choices and varieties available to you if you choose to shop for a used vehicle. Year, make, model, even trim can be available and affordable to you if you’re willing to compromise on one or a couple of these. All it takes its prioritizing your needs and wants. 

Even in terms of types of used car lots, you really have your choice. Because used cars come in such high demand, there are used car lots everywhere. Often, there are used lots on the same location as new lots because it’s a great market and there is still so much value to offer in newly used vehicles.

Also, the variety of used cars offered to you is much greater than brand new vehicles. Let’s say you prefer a vehicle that comes standard with certain safety equipment, but, like most people, you have a budget you need to work within. Knowing that government regulations for safety standards on all automotive vehicles changed after 2010, you’re given better parameters to work in and there is still so much variety afforded to you. 

As I mentioned earlier, if you can afford a base level brand new car, then you can certainly afford a used model in a top trim. Putting yourself into a top trim model with leather interior, low mileage, decked out with all the goodies you prefer, while lowering your monthly car payments and insurance rates sounds way more impressive than “Like my brand new base model car that I can barely afford?”

The answer is simple. Try a used car first. You’ll be glad you did.