The argument about whether it’s better to buy a brand-new car or a used car has been going on for a long time While both sides have valid arguments, we’re here to show you very practical reasons why getting a second-hand car is better.
6 Practical Reasons Why You Should Buy a Used Car
1. You skip the depreciation period.
Experts say that as soon as a car is driven off the lot, it automatically loses 20% of its value. Take away an additional 10% during its first year and you already have a 30% depreciation rate within the first year alone.
If you buy a car that’s at least two or three years old, you can escape the depreciation period. Depreciation flats out in the second year and won’t dip until after its fifth year. You can buy a two-year-old car and resell it with very minimal loss in equity.
2. Warranty and coverage differences are minor.
If you’re worried about the car’s warranty and coverage on certain services and parts, such as replacing a Ford or Subaru timing belt kit, most used cars, especially those that are two to three years old, have very minor differences in warranty and coverage when compared to a brand-new one. Just be sure to look for dealerships that guarantee safety certification.
3. Cars today are more reliable and last longer compared to cars of yesteryears.
The notion before that buying a second-hand car is like inheriting someone else’s problems has been done away with by modern technology. Car manufacturers have been producing vehicles that are far more reliable than those from previous decades. Because of this, cars that aren’t bought right off the assembly line can still be driven and enjoyed with peace of mind.
4. You reduce insurance costs.
One of the key factors in determining a car’s insurance is its value. Since a used car is significantly lesser in value compared to a brand-new unit, the cost of insurance is relatively lesser. You can even do away with some insurance elements, such as collision and theft, with a used car.
5. Registration fees are lower.
Nobody likes throwing money away on car registration. One of the things that determine registration fees is a car’s depreciated value from its original SRP. A car fresh off the lot will garner a higher registration rate compared to the one that’s already a few years old.
6. Detailed vehicle history is now easily accessible giving you peace of mind in a second-hand-car purchase.
All vehicles are given a Vehicle Identification Number or VIN making it easier to track its history. Companies such as AutoCheck and Carfax can produce a detailed history report of a specific vehicle based on its VIN. These reports contain highly valuable information, such as mileage verification, to give the potential buyer an idea of what the car’s actual condition is.
Whether you choose to buy a car brand new or second-hand, always factor in the upkeep. Buying a car entails maintenance costs as well. Take a long hard look at your financial standing and see how you can sustain owning a car for the long-term without having financial difficulties along the way.