New cars start to lose their value from the moment they leave the showroom or dealership, so buying a used car makes financial sense for anyone looking to save money on their car purchase.
There are several reasons why people may buy used cars instead of new ones, as further pointed out below.
Used cars are still pretty good vehicles
One of the main reasons why many people shy away from buying used cars is because they do not think such cars are reliable. While it is true that not all used cars are in mechanically sound condition, well-maintained used cars tend to be just as reliable as newer models.
To reduce the chances of buying a bad car, ask to see documentation on the vehicle's maintenance history.
Also, request the seller to have your mechanic inspect the vehicle to assess its overall health and condition. Only purchase a second-hand car once you have confirmed that it is in good working order.
Used cars do not depreciate as fast as new ones
Because new cars take the biggest depreciation hits during the first few years of vehicle ownership, buying used can cushion you against massive losses in vehicle value.
Sure, used cars depreciate too. However, the depreciation rate for these cars will be significantly lower than that of newer cars. This means used cars retain their resale value much better than newer ones.
Used cars attract lower insurance rates
The insurance rates for cars vary depending on many factors. However, the value of a vehicle is the biggest factor influencing how much insurance you'll be required to pay for it. Insurance rates for used cars tend to be much lower than new cars due to the former's lower value. This translates to even further savings on vehicle ownership costs.
Used cars can serve as relics
While some people can't wait to buy the latest cars available on the market, others prefer to buy older vehicle models. If you are passionate about keeping older cars as collector items, you'll need to focus on the used car market.
Many people usually think of getting a used car only when they can't afford to buy a new one. But as you can see above, there are many good reasons to buy used cars. If you are in the market for a used car, check with a reputable used car dealer near you for a good deal.