Deciding to buy a new or a used vehicle is something that most car shoppers go through. And while both options have pros and cons, the deciding factor usually boils down to the person's budget. It makes sense since the purchase is a sizable investment and shouldn't be something that puts the owner in a financial pickle.
But aside from the money-saving benefits that used vehicles have over their brand-new counterparts, we also want to emphasize the other advantages they have. Hopefully, these will help you in making the right decision that will best fit your needs. That said, there are several examples.
One significant advantage that used vehicles have over new ones is depreciation. We all know that when we buy new, its value drops. But what many don't know is that it can drop by as much as 20%, in some cases. And with every passing year, it falls by another 10%. So, a brand new, $20,000 investment will value only around $10,000 in about three years.
Used vehicles, on the other hand, have already gone through this process. By the time you buy one, that depreciation rate will start to level off. And if it was properly maintained throughout this time, you'll get close to the same deal as a new vehicle but at a much smaller cost. At Mike Duman Auto Superstore, you'll find some of the best-preowned deals available on the market.
Getting the Loan
Financing used automobiles is much easier and more straightforward than for a new one. Keep in mind that because of that immediate 20% drop in value that new auto experiences, new vehicle owners will find themselves in what's called an upside-down loan. It means that they owe more money than the vehicle is worth. In other words, financing used is more straightforward, more comfortable, and more practical than financing new.
Lower Registration Fees and Insurance Costs
Insurance premiums are one of the most substantial expenses that are associated with any vehicle. Statistics show that the average annual insurance rate is somewhere around $900. With pre-owned, however, lowers this national average, making the insurance costs much smaller than for new models. Similarly, registration costs are also lower, also because of the more modest price as compared to new.
Customizing a new ride adds thousands of dollars extra to the price. But if you opt for a used car, you can pick and choose which upgrades to make, spending much less for basically the same features. Aftermarket products are less expensive than purchasing them at a new car dealership.
Getting Your Dream Car
Last, but not least, buying used can also allow you to get the car of your dreams. If you've been eyeballing a vehicle for a while but didn't have the budget for it, the chances are that you can get it used at a more affordable price than new.
These examples show that buying a used auto is a wise investment and a better alternative than a new one in more ways than just the price, itself. Make sure to perform your due diligence and pick the best model in the dealership. Mike Duman Auto Superstore has a large inventory of cars, trucks, and vans you can shop. Contact us today for more information.