The Benefits of Buying a Used Car vs. a New Car?
What are the Benefits of Buying a Used Car Versus a New Car?
Buying a new car is normally one of the most expensive purchases you can make. Alongside other major investments, such as a new property, a boat, or starting a business, that new car can place a significant strain on your finances, which is why used cars continue to be an increasingly popular purchase choice every year.
Not everyone can afford top-of-the-line models from the major brands, so pre-owned vehicles make a valuable alternative for buyers on a wide range of budgets. Even if money is tight, coping without a car simply isn’t an option for many of us. Perhaps you depend on a car for everyday chores, such as getting to work and back, dropping the kids off at school, collecting groceries, or to earn a living. Regardless of your motivations to invest in a new vehicle, trying to choose between a new or used car can be extremely difficult. To help you see why buying a used car could be the perfect choice, we have listed the key benefits below.
The most obvious difference between a new and used car is the price. New cars fresh off the production line often come equipped with many features you may not need or want, and can run into many thousands of dollars above the base price. While it can be an ego-boost to be seen driving the latest model and receive compliments about your new car, many of us simply cannot afford the extra cost.
Used cars tend to be far more cost-effective, and when buying from reputable dealerships like G&E Motors, you can rest assured that they have been thoroughly checked for quality. Furthermore, investing in a pre-owned vehicle ensures you’re paying for the car itself, and not just the brand name or model number. Used cars are a fantastic option for drivers on limited budgets. Anyone who wants to spend their money on a high-quality vehicle without the extreme costs associated with brand new ones can expect to get a car that meets their needs at a much more affordable price.
Before you visit a used car dealership, take the time to work out your current financial and living situations, and think about how that may change in the future. Look at your everyday needs, your monthly expenses, and consider the most comfortable, realistic price you can afford. But just because you can afford a car at the limit of your budget doesn’t mean you should. Since it’s doubtful you will be paying cash for your new vehicle, whatever you calculate a monthly amount you can afford today may turn out to be too much of a financial burden before the loan is paid off. It’s wise to have a financial cushion in the event you experience unexpected expenses while you’re still paying off the loan.
Lower Rate of Depreciation
Over time, all cars will depreciate in value. Every mile you drive, every month you have the vehicle out on the road, the value keeps dropping. Some cars can lose as much as 30 to 40 percent of their value within the first year. Obviously, if you buy a brand-new car with no intention of selling it, there’s less to worry about. However, if the brand-new car you buy today is likely to be traded in the near future to offset the cost of another new model, it may not have the value you’d hope it would. Having its value reduced so much can leave you taking a big hit at trade-in time, which may result in getting far less than you believe the vehicle’s worth.
Used cars, though, will still see some depreciation, but most of it has already occurred with the previous owners. You can run the car every day, getting full use out of it, without the fear of losing excessive amounts of money to depreciation in the years to come. This is just another benefit of used cars’ smaller price tags, and means you won’t see the car’s value take a nose dive within the first year of use. But also think about the type of value you want to get from your new pre-owned car before you go for it. Are you expecting to keep it running for many years before it’s time to replace it, or are you hoping to get short-term usage before trading it in for a newer model? Knowing the answer to this will ultimately help you make the right decision.
Today, you have a massive selection of used cars to choose from. As people sell their previous vehicles or trade them in towards the cost of a new one, dealerships take on more and more used stock. You can see cars from various eras as you wander a used car dealership, exploring a huge diversity of manufacturers, models, designs, and features.
Another benefit of having so many choices is that you may find previous generations of newer models, which offer similar designs and features without the hefty prices. Alternatively, perhaps you just prefer the styles of older vehicles compared with newer ones, and consider the lower cost a nice bonus. Whatever the personal advantages to yourself, there’s no argument that pre-owned vehicles provide a much more varied, diverse range of options for your buck.
Don’t be afraid to ask your sales person what type of cars they have in stock that will suit your personal needs, lifestyle, and everyday requirements. The huge range of options is a real advantage, but you can find yourself feeling daunted if you don’t have a good idea of what best suits your needs. Used-car sales professionals will generally be happy to show you a broad variety of possibilities, and let you test drive those models you’re most interested in.
Your Money Will Go Further
Your maximum budget may allow you to get the most basic brand-new car on the market, giving you access to a sleek finish and sharp design, but without the features that higher-priced cars include. Depending on your personal tastes, simply having a new car by a certain brand could well be reason enough to spend the absolute most you can afford.
However, if you were to take the money you have available to a used car dealership instead, you would be able to get far more for it. You might be able to find an older vehicle with an even nicer design, solid features, and better fuel-efficiency than the other shiny new ones.
Of course, a major advantage of choosing a used car over a new one is that you don’t need to max out your budget; you can generally find the ideal car for your unique lifestyle or work needs well within your affordability range. And don’t forget to plan on what your other expenses related to the car will be. Tires, brakes, general maintenance, fuel costs and other little costs can all contribute to the overall price of getting, and running, a car. Depending on the specific car, these costs can vary significantly, so, be sure to take them into account.
Less Chance of Recalls or Technological Faults
Buying a new car that has just hit the showrooms might be more exciting than you ever believed, with the salesperson offering a number of freebees, and tending to your every need, but there is a potential danger. New models featuring advanced technology and engineering have been known to have faults that often take some time to present themselves, and recalls on new cars can and do happen when certain features or parts are discovered to be a safety or operational concern. Some defects have even been serious enough to potentially cause major injuries, or even death.
This type of issue is not as much of a concern when buying used cars; most problems will have been detected by the time they reach the pre-owned market, and any recalls are likely to have been taken care of already. This means you can feel more relaxed about the general safety of a used car knowing that the original owner has effectively road-tested it for you. Be willing to ask the sales person you deal with about the car’s history, and if it has experienced any issues. In all fairness, the sales person may not know, but asking can give you a valuable insight into your prospective vehicle’s background.
Lower Insurance Rates
Your insurance rates are also affected by your car’s age. Though every vehicle will vary, you can be sure that keeping your used car insured will be much cheaper than insuring a brand-new model. Insurance can be one of the most expensive aspects of maintaining a car, especially when combined with fuel charges, toll rates, and your other expenses. Buying a used car will help you keep your insurance costs down and, as a result, will make less of an impact on your monthly expenditures.
The brand and model you choose will also be a factor when it comes to insurance rates. Smaller cars tend to be less expensive to insure, so if you don’t need to go for a bigger vehicle, opt for one that’s a little more compact. Even if you need a larger vehicle because family size or job requirements, perhaps a mid-size car or truck, instead of the biggest model, may work out fine. And the more upscale the vehicle, the more it will cost to repair if it’s involved in an accident, resulting in higher insurance premiums, of course.
Easier to Secure Financing
Trying to secure financing for a new car can be a real challenge, especially if your credit score isn’t quite as high as it should be. Believe it or not, a credit rating on the wrong side of the 700’s can create the impression that you are a high-risk borrower. Even if you have full-time employment and have the money to make the payments, poor credit-management over the years may affect your plans to buy the dream car you’re hoping to get.
This makes getting a loan to cover the cost of your new car more difficult than you may have expected, and leave you unsure where to turn next. Without a loan, millions of us would struggle to buy a car at all, as having the full amount available is far beyond the average American’s means. At G&E Motors, we offer instant credit approval to every customer. A used car is not only cheaper, but being approved for an auto loan regardless of your credit score or history takes a huge weight off your shoulders. You can walk in, discuss your financial situation and needs with a member of our expert in-house finance department, and get the financing necessary to purchase your ideal car without any hassles.
Having a good credit score is given more and more importance today, but if you have missed some payments on bills, made too many credit applications, or done anything else to drag your credit rating down, you don’t need to worry that you’ll be unable to secure financing for your used car. Getting an auto loan with instant approval can help you build your credit rating up over time, as you continue to make repayments on time. Having a higher score can open you up to more credit cards, loans, and other financial arrangements in the future. Buying a used vehicle is quick and easy with G&E Motors, even with poor credit. Just give us a call or stop in to our dealership, and our expert team will go over our inventory, take you through financing options, and help you drive away in the right pre-owned car or truck for you. And don’t forget that every vehicle we sell comes with a 115-point quality inspection, a CarFax report, and a 30-day/1000 mile-warranty.