There are a lot of good reasons to buy a used car, most of which involve saving money. From a lower drive away price to cheaper insurance and less depreciation, sometimes buying a used car instead of a new one just makes sense. If you’re trying to decide between buying a new car or a used one, we can help and we understand that every customers situation is unique. These are four benefits of buying a used car.
It Cost Less
A used car will always initially cost less. Although it always feels good to buy a new car, it’s not uncommon for a new car to lose thousands of dollars in value when you drive it off the lot for the first time. It’s exactly why you can buy a 2012 Range Rover for the price of a 2018 Honda. Someone probably bought that new Range Rover for over $100,000 and now it can be yours for about half of that price.
Depreciation is Slower
Many new cars decline in value another 10 percent during the first year. That’s on top of initial “drive-it-of-the lot” depreciation. That can quickly add up. You can avoid such rapid depreciation by buying a slightly used car instead of a brand new one. Sometimes it’s hard to find a one-year-old car, but two- and three-year-old used vehicles are not too hard to come by.
Smaller Stamp Duty
Before you buy a new car you should investigate the cost of stamp duty for your state. Some dealerships try to gloss over the issue and then later you’re shocked at the cost. We don’t do that. We believe in disclosing all of your costs up front. Some states charge stamp duty on new cars, but not used ones. Sometimes the cost of stamp duty can be thousands of dollars, so research it ahead of time and plan accordingly.
The main factor in the cost of car insurance is the market value of the vehicle. Because a used car is worth less than that of a new car, the cost of insurance is generally less. Sometimes you can save even more money by dropping some of the coverage, such as collision, or theft, once a car’s value declines to a certain point.
We know that purchasing a car is a big investment. You have a lot of choices, and we’re here to help you any way we can. Fortunately, we have a lot of great financing options, along with an extensive inventory of both new and used cars. We invite you to the dealership to find out for yourself.