Advantages and Benefits of Buying a Pre-Owned Car
The purchase of a vehicle is a major expenditure, so you want to make sure that you get it right. One of the biggest decisions for the car buying process is whether to buy pre-owned or new. For this post, we highlight the advantages and benefits of buying a used vehicle.
While it can be enticing to own a car that no one has driven before, there is a major price difference between a new and used car. On average, the price gap between new and used vehicles is around $20,000. If you’re on a stricter budget, that’s a considerable amount of money.
No New Car Fees
While you’ll have to pay some fees for any type of car you buy, like license and vehicle registration, the random fees that get tacked on to new cars typically are higher. This may include delivery, processing, handling and advertising fees.
You’ll generally lose less money through depreciation with a pre-owned vehicle. When you drive a new car off the lot, it immediately loses up to 11% of its value. By the first year, the car’s value will have decreased by 25%, and by the third year, a decrease in value by 46%. That’s a major depreciation that you’ll likely not experience when buying used.
Wider Vehicle Selection
When looking for a pre-owned vehicle, you’ll have a much wider vehicle selection from which to choose — spanning many years, models, trims, color choices and other specifications. With a new car, you are much more limited in your options.
Improved Technology for the Car Buying Process
Before the rise of the internet, pre-owned car buying used to be a much more challenging process. However, with online sites like KBB.com and Carfax, you can quickly find such information as average value, features, specifications and reviews. Also, with many online forums and customer reviews, you’ll likely be able to find good information from previous owners of your targeted vehicle.