The Biggest Benefits of Buying a Used Car | VAL Blog

What are the benefits of buying a used car

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You’ve been through dealership after dealership, and you still are unsure about what to do. The question of purchasing a new or used car is one that affects many car buyers, so if it makes you feel better, you aren’t alone. Moreover, by questioning what to buy, you are already being shopper savvy, so you should be proud of yourself. What most car buyers do not realize is that purchasing a fully new car can actually be disadvantageous. They also fail to realize that purchasing a used car has an array of benefits that just can’t be beat.

The Perfect Time

Lucky for you, now is the perfect time to finance your pre-owned vehicle. For the past few years, used car prices have been steadily increasing. However, as of late, the increase has stunted and used car prices are hitting a four year low. The financial section of the Wall Street Journal recently released an article detailing the average price of a used car, a number which comes to a low $15,617. With the average price for a new car inching over $30,000, that $15,000 is extremely appealing to anyone’s wallet. In addition, another reason why it is the perfect time to buy is that some of America’s favorite car brands are the ones whose used car prices are wallet-friendly. Brands such as Volvo, GMC, and Chevrolet usually carry low prices. Not only are these cars great on the road, but they are a worthy investment when bought used. Lastly, the final reason that it is the perfect time to buy is the widespread appearance of certified pre-ownership programs, which makes the buying process much easier than those related to buying a new car.

Protect Your Wallet

As lightly touched upon in the previous point, buying a used car is much cheaper than dishing out thousands of more dollars on a new car. When purchasing a new car, many dealerships will require a down payment of at least 10%, and if you are the average car buyer, that means putting a down payment of at least $3,000. Such a hefty sum can truly put a dent in your budget and wilt away your financial freedom. In addition, paying the minimum down payment for a new car also means a higher monthly payment.

Hopefully, you’re starting to get the idea that buying a new car is not a financially smart decision. On the other hand, there are many financial benefits to buying a used car. Not only do you save more money, as the average cost of a used car is only $15,000, but you will not face the massive car depreciation when you drive off the lot and you will be able to utilize certification pre-owned programs, which are available at many used car dealerships.

Certification Programs

Used car certification programs are only offered through dealerships, and do not exist when one makes the unwise decision of purchasing from an individual car owner. Certification programs are programs that ensure that the used car that you are buying meets certain quality standards. Usually, to qualify for a certification program, the used car is less than 5 or 6 years old and it is limited to 50,000 and 100,000 used miles. Once the car meets such standards, the car is then put though a number of intense inspections to verify whether or not it is a quality car.

When you purchase a used car, the list of inspections performed is usually available to you, which offers a great deal of transparency and honesty on the part of the dealership. In addition to this, you can also receive a used-car history report that is typically issued by Carfax. You’ll know to whom the car has been registered in the past, collisions, when it was bought and sold, and the reported dealer service.

This entire certification program is extremely useful, as it not only provides you with relevant and important information, but it also makes buying a used car a simple and easy process that does not exist when buying a new car.

Depreciation

As slightly mentioned in one of the previous sections, new cars depreciate immediately once you drive it off the lot. This depreciation gets even worse in the first two years. The golden number that represents that value of depreciation is a whopping 30%. Therefore, buying a new car means that you instantly lose a large portion of the value of your investment.

Should you decide to sell your new car, there is nearly no chance that you will be able to sell it without taking a loss. On the other hand, the benefit of buying a used car is that you do not need to face this hit. The car has already depreciated in value, and all you are left with is a car that has been tested and ensured for quality. In the case of buying a used car, you do not instantly lose value on your investment and you also save a great deal of money. Can’t beat that.

More Bang for Your Buck

Consider this – you are looking at two models of car, by Ford per say. The first model is a new model of a sedan, while the second model is the large and spacious Ford Pick-up, although used. Both are the same price, only because the second option is just a bit older and slightly used. This should not be a tough decision. Your family is growing, you’ve always wanted a pick-up, and the sedan just seems small and unreliable.

This is a typical scenario when deciding to buy a used or new car. Many people fail to realize that buying a used car can provide them with more for their dollar. Rather than spending the same amount of money on a smaller model that you dislike, you can buy a used model that you are in love with for exactly the same price. This also holds true for car brands. You can choose to buy a used luxury car that you have always wanted, rather than spend the same amount of money on a new car from a less prestigious brand. Besides, with the quality of many used car these days, not even you will be able to believe that the car that you have just purchased is used.

Tips

Lastly, to make your shopping experience better, there are a number of tips that you should follow when buying a used car.

Know what you are looking for
Set a price range for yourself
Compare models and ensure that a quality check has been performed
If you have bad credit, talk to a bad credit expert, you can apply for a bad credit auto-loan, use a co-signer, put down a large down payment, and remember to focus on negotiating the terms of the loan

Keeping in mind the points of this post, and remember the above tips will help you find the perfect used car for the great price that you deserve. Make the right decision, and buy used.