What are the main benefits of buying a used car?
Used cars often get a bad rep. People often think of them as unreliable and dirty, as used-up items. In most cases, this couldn’t be further from the truth. The used car market offers buyers an incredible number of benefits, from affordability to buying a car that’s been tried and tested by the market for a number of years.
Whether you can’t afford to buy a new car or are wondering if a new one will be a sensible investment, read on to discover some of the main benefits of buying a used car. A big thanks to the team at Hi Lo Auto Sales for assisting with their insights for this article.
1. You’ll save money
Buying a new car is most often an incredibly poor investment choice. Cars depreciate rapidly, with used cars generally over 50% cheaper than new ones. Because consumers tend to change their cars after an average of six years, this means there is a constant stream of used cars hitting the market.
Terrible for those who bought a new car, but great for those who don’t mind going the second-hand route.
2. Avoid hidden fees
One of the many frustrating things about buying a new car is that the price displayed in big numbers in the window is rarely the price you actually need to pay for the vehicle. There are often countless fees, such as destination fees, shipping charges and dealer preparation that bump the price up significantly.
Of course, this depends on the dealer – some may be more honest or fair about their fees. With used cars, there tend to be no hidden fees. There may be a doc fee of a couple of hundred dollars or state taxes depending on where you are, but they will generally be quite low.
3. Cheaper insurance
With new cars, insurance premiums will almost always be more expensive. The car might be safer than an older model, but the simple economic reality is that if you crash it, the insurance provider will need to pay you more money.
People also often pay for gap insurance with new cars – a premium that covers the difference between the value at the time of the crash and the value at the time of purchase. Again, this isn’t necessary with used cars, leading to further financial savings.
4. Lower environmental impact
The impact that our decisions have on the environment is a factor that is starting to spread into every area of our lives, and this is the case with buying a car as well. Buying a used car is a bit like recycling, but with a far larger impact.
Around 25% of a car’s total CO2 emissions occur during the manufacturing and shipping process. Keeping an old car on the road means that one less new car needs to be manufactured, keeping resources in the ground and emissions out of the atmosphere.