There are thousands of articles published by drivers who are trying to make a point gathering long list of reasons why it is better to buy a used vehicle instead of brand new auto. But practically it is all about affordability and there is no other power except money will force us to purchase a secondhand car. No one will pick even slightly used vehicle over same make and model auto with zero miles if the prices will be identical.
Simply taking a financial factor into account, I put together five main reasons why it is better for me to purchase a used car instead of new one.
Prefer eliminating financing option
It is no questions financing is a great solution for those who do not have enough cash to purchase a vehicle or simply refuse to understand the whole meaning of car loans. Paying $350 a month for 5 years might seems much attractive option compare to decreasing the amount of your bank account at $21,000 in one hour, but elimination of interest is pure savings which I would rather spend on vacation or updating my camera. Unfortunately 0% financing are very rare and offered on vehicles I often not interested in while making over $40,000 new car purchase for cash tremendously exceed the budget limits.
Driving latest model car purchased twice cheaper
Car manufacturers normally make significant changes to their models every 4 – 7 years what basically means two years old vehicle is definitely a used car, but it is still the latest version and you have a few more years before the auto will be replaced with a new redesigned and improved model. On the other hand, car value will decrease the most in fist years. It is very common that three years old can be sold only for 50% of its original price, but in the next 3 years it will lose only 25% -30% of its value.
Advantages of reselling
Purchasing a new car is always a big loss with no exceptions. Smart purchase of a used vehicle can even turn into gain or at least minimal waste of money. Used car bought on auction at very low price can be resell in short period of time with some profit.
Less expensive insurance
It is cheaper to insure a less valuable used car compare to more expensive new vehicle. Only on car insurance you can easily save a few hundred dollars a year.
Easier to negotiate the price with private used car owner
While purchasing a new vehicle dealing with a car dealer is unavoidable. Many customers even prefer to go straight to a dealership and pick the auto with no time consuming shopping process involved. But if you have time and possess slightly higher than basic knowledge about cars, it is always a good idea to look for a private seller and negotiate the price if the vehicle in a great condition. It is so true most sellers set higher initial price, but often willing to reduce it and you can easily purchase a good vehicle at much lower cost compare to the similar car offered by a local used cars dealer.