The car market is massive and diverse. You might or might not be a car person, but that does not mean you do not need a car. On average, more than 90% of US households own a car already. For commuting, for a casual trip or for a business - you need a car for everything these days. Life without transportation is not an option anymore. With the ravaging pandemic, the need for personal cars has increased more than ever as people are trying to avoid public transportation.
When you go to buy a new car, the sticker price might surprise you or shock you. Sure, there are cheaper cars, but they might not be that good and might not serve your purpose. Buying used cars, especially in this market if you belong to a regular middle-class family is actually the better option.
You want a sedan? Look for a used Honda Civic, Toyota Corolla, or Nissan Sentra. You want a crossover? Look for a used Honda CR-V, Mazda CX-30, or Hyundai Santa Fe. You want a used pickup truck? Look for a Chevy Colorado, Ford F-150, or GMC Canyon. There are lots of options. Here are a few reasons why used cars are better -
Cheaper price tag
Well, the obvious reason for people buying a used car in the first place is the price tag. Of course, a used car will cost way less than a new car. The primary reason for this is depreciation. But not all cars depreciate at the same rate. There are some cars with higher resale value than some others.
Usually, more popular ones tend to have better resale values. However, due to depreciation, after 3 years or more, even those cars will cost significantly low on the used car market. You must obviously perform your adequate research before pulling the trigger. If you do your due diligence and land yourself a sweet deal, you might get a hold of a very reliable used car.
Lower loan amount
Try to buy a used car from a trusted dealership, because buying from another individual will not land you the same benefits as buying from a dealership. You can find loans for used cars, just as you can get loans for new cars. The benefit in this is that the used cars have a smaller price tag and hence, the loan will also be smaller.
You will not have to spend a ton of money on the overall amount (including principal + interest). Hence, the total amount on a used car loan will also be lower and more affordable. However, be careful that these loans usually have a higher interest rate.
Lower insurance rates
Insuring a car is a very important factor in the purchase of a car. Now, when you buy a used car, the primary advantage is that the hefty insurance premiums are actually already paid by the previous owners. The first premiums are the hefty ones and the owner must have paid them off. Now when you purchase the vehicle, you will have to pay a significantly lesser amount of money for the insurance, but you still get the full benefit.
Same amount of warranty
When you buy a used car from a trusted dealership, you also get a certified warranty scheme. When the owner buys the car anew, he gets a warranty. If he sells the car to a dealership before the warranty period ends, and you end up purchasing it; then you get the leftover factory warranty.
But the dealership will also offer you their own warranty scheme, which will add over the factory warranty. So, you can easily enjoy an extended warranty. This is another reason you should buy from a dealership.
Idea about the car and its reliability
Nobody wants to spend a fortune on a car, only to find out it costs more to keep it running, annually. This is why buying a reliable car is a must. The reliability of a car can be found by researching online or looking it up on J.D. Power.
The advantage of buying an old used car is that there will be many reviews and many people will have stated their own long-term reviews. If these long-term reviews shine a positive light on the vehicle, you can go ahead. If not, consider looking for another car; this is not the one.
Owning a better car
How many times have you looked at a car online, been attracted by it, only to find out that it is completely out of your something you can afford. This is where the used car market comes in. You can buy that beloved without spending all your bank balance, and won't actually have to starve. The used car market allows you to own a car that you probably wouldn't have been able to afford new. Sure, it won't allow the same effect as buying a car, but you still do get that car.
Ability to drive without any 'new car' stress
As you must already know by now, there are quite a few things you must not do with your new car. When you purchase your new car, you are bound to follow a few things to ensure the longevity of the car. Some of these include - not shifting at redline, not driving short distances, not pushing the pedal too hard, not overloading the vehicle, etc.
However, all of that anxiety does not come with a used car. In a used car, those are already done and you can drive your heart out. Ram the pedal, overload the car, go on a long trip without having to worry about a small dent or a scratch on your new possession. This will obviously free up your mind while driving.
Like previously mentioned, depreciation will be different for different cars. However, they all follow the same trend. If you buy a new car, it will lose a significant chunk of its money over the first year or so.
However, as time goes on, the depreciation will be slower and slower. So, if you already own a used car, the biggest chunk of the money it could lose has already been lost. If you sell it after a few years, you will actually be able to sell it for a much lesser loss than you would have incurred had you bought it new and then sold it.