It can be tempting to splurge on a brand-new vehicle, especially when you view the rows of gleaming models at the dealership. However, from the practical point of view, it may make more sense to buy a less expensive used car that can ferry you around just as well. It may also prove to be a better investment in comparison for the following reasons:
You can find more model options in the used car category
There are many reputable dealers offering quality used cars in Madison Heights VA, and they will have extensive choices in models. Some of these may be from five years back or older. You may even be able to find discontinued cars that a new car dealer wouldn’t have. To find a model that is right for you, research the price and features of the available ones. Read consumer reports and buyer reviews. Purchase the car only after you have made an informed decision.
You can make a sound purchase with a certified pre-owned vehicle
Certified pre-owned vehicles are used cars that the brand manufacturers have checked and endorsed for quality. When you buy such a model, you can be sure you are making a sound purchase that will be both safe and roadworthy. You will also get a warranty for the vehicle that will be comparable to a new car warranty. Additionally, you may be able to purchase the car at a low-interest rate.
You can get more out of your money with a used car
Prices for new cars, even for the basic trims with limited features, can be expensive. If you are on a budget and yet want to get a higher trim with more advanced features, you should consider investing in a used car version. You will be able to buy it at a lower price, and that will mean lower repayments as well on your car loan. The savings that result from this can go into upgrading the used vehicle with new add-ons.
You will experience less depreciation with a used car
If you buy a new car, it is going to start depreciating by 20% right away. So, when you purchase a $30,000 vehicle, it will have lost $6000 of its value by the time you reach home on the first day itself. And it will depreciate further in value as you continue to drive it around.
That may not signify much in the first three or four years when the car still feels fine, and all the parts operate as they should. However, what happens if you want a new model and decide to sell the current one? Well, you will be fortunate if you can find a higher offer than $10,000 for it.
However, it is a definite bargain if you start by paying only $10,000 for a used car in good condition. It will get you where you want to go, and even though it will depreciate too, it won’t matter as much, especially since you won’t have to pay off an expensive loan plus interest.
You will acquire a reliable and road-worthy vehicle
Used cars that are one to five years old are almost as good as new vehicles and will come with more or less the same driving technologies. You can try taking both a new car and a used one for test drives and see if there is a vast difference between them. If the used vehicle seems just as reliable and road-worthy, take advantage of its lower price and buy it instead. As long as you maintain it well, it will give you good service for a good many years.
You will have lower insurance and registration fees
The price of your vehicle will determine how much insurance and registration fees you will need to pay. That means, if you buy an expensive brand-new car, you will have higher rates. For a less expensive used car, the fees will be correspondingly lower.
As you see, you end up saving more when you buy a used car of sound quality, and that is why, in the long run, it will make a better investment choice than paying a higher price for a new vehicle.
