When the subject of buying used cars vs. brand new comes up, everyone has an opinion about which is better. Your uncle insists that a new car is a terrible deal because of depreciation, while your neighbor regales you with horror stories about the problems she’s had buying used cars.
So, what’s a car shopper to do?
Buying Used Isn’t Nearly as Risky as It Used to Be
It’s true; there was a time when buying a used car wasn’t for the risk-averse buyer. Other than taking it to your mechanic, it was nearly impossible to know how much abuse was heaped on that car or truck before you bought it. In the worst cases, you couldn’t even be sure that the number on the odometer was accurate. Scary, right?
Modern technology makes it much easier to feel confident about buying a used car. History reports can tell you about the vehicle’s title and maintenance record. And automakers have increasingly made it more attractive for new car owners to keep up with scheduled maintenance. That means you’re more likely to get a used car that has been better maintained than those old jalopies your neighbor got stuck with.
And let’s not discount the power of the internet: online reviews are a great motivator for dealers to make sure you get a reliable used vehicle.
It Doesn’t Take a Flood to Put You Underwater
You’ve heard it a million times about buying a new vehicle: on average, a brand-new car loses 10% of its value the minute you drive off the car lot, and it keeps dropping from there. According to Carfax, that SUV you paid $40k for may only be worth $16k in five years.
This can cost you dearly, especially if something happens to the vehicle while you’re in the first few years of your auto loan. Even with insurance, the amount remaining on your car note may be substantially more than the vehicle’s replacement value. And when you’re underwater on your loan, you’re stuck covering the difference.
A Better-Than-New Option
Auto manufacturers offer a lot of tempting incentives to head to your local car dealer and buy a shiny new car (and we’re not just talking about “new car smell”). Complimentary maintenance, warranties, roadside service, and extra goodies like satellite radio subscriptions.
What if you could get all that in a used car? Consider buying a certified pre-owned vehicle. Many automakers offer robust CPO programs that include most or all of those new car benefits, minus the depreciation. Certified vehicles are also thoroughly inspected to ensure quality and safety.
And if you’re really addicted to new car smell, we’ve heard there’s a new car smell fragrance you can spritz throughout your vehicle.
On a Budget? Buy Used
If you’re looking for an affordable way to get a newer-model truck, SUV, car, or van, don’t be afraid to buy used. Not only will you get more premium features and save on depreciation, but you’ll also pay a lot less on auto insurance. Today’s used cars are safer and more reliable and a great option for buyers on a budget.
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