Buying things used has always felt like a characteristic choice. Not everyone goes to thrift stores, not because they won’t find something they like for a great price, but because they don’t feel like thrift stores and buying used is part of their personality. It might seem obvious the benefits of buying something used. For one you know the product has been sturdy enough to last the previous owner’s usage and secondly, you are paying much less.
So why is it that not all people buy used? Yes if you had all the money in the world and could buy something new you would, sadly not all of us are rich. Are there any real financial benefits to purchasing a vehicle new? Well beside being able to finance your car in different ways, it seems, unless the car gains value as it ages, new vehicles always end up costing more than their used counterparts.
If you are looking for a new vehicle because your current one has recently been damaged or totaled, there is no need to stress. Selling your vehicle is a great way to make money for your next one, be it used or new. There are even websites online that will buy damaged or even totaled cars.
Cars depreciate and they depreciate fast. When you drive off the lot your holdings in that car start their spiral downward and can go down by 20 to 30% in just the first year. A $30,000 car could be worth $21,000, and trust me you feel that $9,000 when you try to sell that vehicle. At 6 years, the average length of time people keep their vehicles, you’re looking to only sell the car for around 20% of what you paid for it, or just $6,000 if the vehicle was $30,000.
When you buy used, you aren’t going to lose the same amount of money through depreciation. Say you purchased a used car that is 3 years old and the car originally cost $30,000, you would then have purchased it for $15,000. You sell it after another 3 years for $6,000 meaning you lost only $8,000. This may seem like a lot but in comparison selling the car new after 3 years would have cost $15,000. You’re losing practically double the money buying new.
Of course, you aren’t just considering the logical side of things through cost. It is natural to just want new things. A new car can have features, technology, or an updated style that just draws you in more than a used older one. There is a luxurious feeling driving around in a car no one has owned before. The paint still looks brand new and you are driving in the car that you want and it’s only yours.
Not only that but you are driving a car you’re sure won’t be giving you any trouble for some time. It’s a vehicle made not only with modern manufacturing’s seal of approval but is also warrantied by the automaker, meaning if anything is wrong with the car, they have got you covered for as long as the warranty is in effect.
These are great qualities and could be the ones that make people buy new only or shy away from used cars. However, a used vehicle can be potentially just as good as the new one. You might notice how some new cars look just like the previous years and offer pretty much the same package. This is true and holds true when purchasing a used car. Your new car can hold the same experience as a new car with just some extra miles on it.
In terms of longevity, cars made today are becoming more and more enduring than those of yesteryear. The average lifespan of cars being made now could reach the 12-year mark meaning if you want to buy a 3 or even 6-year-old used car you shouldn’t worry about a nonfunctioning vehicle for quite some time. This is great because when you want to sell you’re gonna be getting way more of a percentage of money back than had you bought new.
In conclusion, in most situations, you will pay less for a used car. Sure some cars hold their value better and sometimes maintenance will play a bigger factor but cars today are being built than they have ever been. A new car can be worth it but it depends on how much value you put into the benefits of driving a new car, which can’t really be quantified. I would recommend if you have never considered purchasing a used car to take a look at some and really think about the money you could be saving.