5 Reasons to Purchase a Used Vehicle
Breaking Down the Benefits of Buying a Used Car
When it comes to purchasing a vehicle, it’s hard not to be tempted by the option to purchase or lease a shiny, new car with the most up-to-date features. However, while there’s no denying these brand-new cars can be exciting and flashy, it is often a smarter and more cost-efficient strategy for prospective buyers to purchase a used vehicle. As you begin weighing the pros and cons of buying a new car versus an older model, keep reading to learn more about five benefits of buying a used car.
The Advantages of Purchasing a Used Vehicle
1. Lower Cost
It should come as no surprise that one of the top benefits of buying a used car is a lower cost. After all, it is a widely known fact that cars deteriorate in value faster than any other investment. In fact, a recent study found that cars deteriorate in value by an average of 49.1% five years after purchase. While this is bad news for those hoping to see a return on their new car, this is fantastic news for those hoping to find a great car at a reasonable price. If you’re in the market for a new car, but looking to save some money at the same time, then consider purchasing a used vehicle.
2. Better Insurance Rates
When allocating room in your budget for a vehicle purchase, it is important to consider the effects this decision can have on your car insurance. New vehicles are not only more expensive to buy upfront, but they are also more expensive to insure. Certain features in new cars, such as better crash safety ratings, can help lower insurance premiums. However, other factors, such as parts being more expensive and less available, tend to outweigh the benefits. Meanwhile, used vehicles that have already depreciated in value and have easier-to-find parts typically offer lower insurance rates.
3. Less Depreciation
Once a customer drives their car off the lot, its value drops immediately. In fact, a brand-new car loses approximately 30% of its value in just the first two years of ownership — and this depreciation only continues as the years go by. Therefore, one of the benefits of buying a used car is that the bulk of its depreciation has already occurred. When you purchase a used car, you don’t have to worry about the drastic drop in depreciation as soon as you leave the dealership.
4. More Bang For Your Buck
Many people tend to associate buying a used vehicle with settling for an outdated model or a car with fewer features — but this isn’t always the case. Because used cars cost significantly less than newer ones, you can often buy a more impressive vehicle that you might not have been able to afford otherwise. While you might only be able to afford the standard model when buying new, you could potentially purchase a fancier used car that is more luxurious — getting the most bang for your buck.
5. Complete Ownership
In addition to the many benefits of buying used versus new, there are also advantages of purchasing a used vehicle rather than leasing one. Depending on your current financial situation, your goal might be to eliminate debt obligations in your life as much as possible. Although leasing a car may seem like the smarter financial decision, leased vehicles come with the same monthly payment as purchased vehicles.
However, unlike a car loan, these payments won’t actually help you pay off the vehicle or move you any closer to ownership — resulting in a never-ending cycle of payments. When you’re done paying off your used vehicle, you will no longer have to worry about making monthly car payments and will have more cash to allocate towards other endeavors.
Buying a Used Car at M&L Lexington NC
Overall, buying a used car can save you money, while providing you with the same satisfaction as purchasing a new car. After all, just because a car isn’t technically brand new, doesn’t mean it can’t be new to you!
If you’re ready to purchase a used car, then our friendly and knowledgeable staff are ready to help you find the right one at a great price. Come visit our dealership to browse our large selection of used vehicles and find the right one at a great price. Click the button below to get in touch with us!