Wheels for Less: 4 Benefits of Buying a Used Car

Wheels for Less: 4 Benefits of Buying a Used Car

After months of waiting, people all over the United States want to hit the road and have some summer fun. If you’re considering getting a car, it’s not a bad time to do so. You may have some extra money from your tax return, stimulus check, or from abstaining from all the travel and leisure you enjoy in most years.

A new vehicle is a major expense during difficult financial times, but you have other options for a new set of wheels. Saving money is one of a wide range of benefits of buying a used car.

If you want to know more about why you should buy a used car, you’re in the right place. Take a look at this list of reasons to buy a used car instead of a new one.

1. Save Money for Other Priorities

Above all else, the main reason people opt for buying a used vs new car is how much money they can save. Cars even a few years old may cost thousands, even tens of thousands of dollars less than their new counterparts.

If you prefer a shiny, squeaky-clean new car, you can use a little of the money you save to pay for a paint job and deep-clean. You could even upgrade equipment on a used car and pay less than you would for a new car with those parts pre-installed.

Insurance on used cars often costs less because thieves prefer new cars. Another factor that lowers your insurance rate is that the amount your insurance company has to pay to replace a used car is less than they’d pay if your car was new.

If you’re someone who will pay anything for new features, don’t imagine a rusty decades-old piece of junk when you think of a used car. Instead, consider buying a used car from the past few years. You can save thousands and keep most if not all of the hottest modern features.

2. Don’t Feel the Sudden Shock of Depreciation

Anyone who’s ever tried to sell a car, trade one in, or sell one for scrap metal knows how frustrating vehicle depreciation is. Most things lose value over time, but cars are among a select few items that lose a huge chunk of their worth the moment you buy them.

Most used cars depreciate like everything else, though some older cars are good investments because they gain value. One of the pros of buying a used car is that it doesn’t depreciate by such a huge percentage when you drive it off the lot.

If you want to sell a new car within a few years of buying it, you might make fewer cents on each dollar than if you sold a “new” used car. When you buy a used car, the amount you pay takes depreciation up to that point into account. Because the value of a used car tends to stay closer to what you paid for it, you’ll get more of what you paid back if you sell it.

3. Be Protected From Lemon Cars

A popular reason people say you shouldn’t buy a used car is that it might not run for long. They’re worried about underhanded car dealerships adulterating cars so they break down. Presumably, you’ll come back for a new one and put more money in their cash register.

This worry doesn’t come out of nowhere: Vehicles like this, known as “lemon cars,” or “lemons,” used to be common. They created a stigma against used cars that lives on to this day.

Even though at least one friend is sure to warn you against lemons if you tell people you’re getting a used car, they’re not too common anymore. Some areas have a lemon law for used cars to protect you against the underhanded practice.

If you’re a victim of a lemon car situation but don’t live in an area with a lemon law to protect you, talk to a lawyer and see if you have other recourse.

4. You Can Still Get Protection Against Repairs

Certain dealers and opinionated loved ones push new cars by arguing that used cars don’t come with a warranty.

When you don’t want a new car, hyping warranties is a tactic that helps car salespeople make massive profits. They love to tell you about the warranties that come with new cars and service plans their dealerships offer. They’ll have you know that you can’t get this kind of protection when you buy a used vehicle.

That’s not true! Wanting a warranty isn’t a reason you have to buy a new car instead of a used one.

You can still get a sort of warranty for a used vehicle, called an extended warranty. Some policies come from auto manufacturers, while others come from third parties.

While companies offering these policies call them extended warranties, there are some key differences between used vs new car warranties. A true warranty is included in a new car’s price and lasts a couple of years after purchase in most cases. You don’t tend to pay anything for repairs under one.

On the other hand, you have to pay for warranties for used cars. They work like service contracts or insurance policies.

You may pay upfront for an extended warranty for a specific period up-front, or pay month-by-month. Some of these policies have deductibles, others don’t.

Cars start losing eligibility at around 15-20 years, so one may not be available if you’re getting a vintage car. They also don’t tend to cover cars with hundreds of thousands of miles on the odometer. If you buy a newer used car with under 100,000 miles, a policy could help if big repairs arise.

Benefits of Buying a Used Car and Other Great Life Tips

If you’re looking to save money on your next car purchase, these benefits of buying a used car show you how easy it is to do so.

Once you have your next set of wheels, take a look around this site to improve your life in other ways. Click on another article and expand your knowledge base today.