When it comes to purchasing a car, there are two options that you can choose from: new or used. Choosing to purchase a new car can be very thrilling! Knowing that you are the first person to drive it off the lot (besides all those test drives) is exhilarating. However, there are many more disadvantages to purchasing a brand new car straight off the lot than purchasing a used car, contrary to what one may think.
Why Used is Better
Buying a used car used to seem like a huge gamble. However, nowadays, there are many more great reasons why purchasing a used car is better than a new car. The professionals from West Side Auto say that with all of the online websites available to check the status of a used car based on the car’s VIN and checking the car’s value, it is easier than ever to find the right used car for your needs. Listed here are six reasons as to why buying a used car is better than a new one:
New Cars Are More Expensive
When it comes to choosing whether to buy a brand new car off the lot, you must know that new cars are much more expensive than used cars. The average new car nowadays costs around $37,000! The average used car costs around $20,000.
Dealer Costs and Fees
When purchasing a brand new car, then you will need to purchase it from the dealer. This means that it will be more expensive, and you will be paying more in fees that go towards the dealers’ overhead prices and for maintaining an expensive dealership.
When purchasing a new car, then you will pay much more in sales tax. Of course, this is pending on where you live, and how much sales tax will be incurred pending on the region that you live in. But imagine paying the percentage of sales tax that is incurred on a $37,000 car over a $20,000 car.
You will also pay more for your insurance. Ensuring a brand new car is not cheap, and your insurance will go up pending on the amount that you’ve had to finance. This means that you will need to consider the costs and extra coverage you may need when financing a car over purchasing a lower value car, such as a used car that is a few years older.
No New Car Smells
Another great benefit of purchasing a used car is that you won’t have a new car smell. You may think that the new car smell is something that you want to find, but really, new car smells mean that the car is still off-gassing all of the chemicals from the new plastics and surfaces within the car. This is bad for your health! Buying a used car means that these chemicals have off-gassed themselves and will no longer be bad to breathe in.
When purchasing a brand new car off the lot, you instantly depreciate the car simply by driving it off the lot after purchase. This depreciation is significant enough that if you were to immediately sell your car, you would instantly lose thousands of dollars! In fact, most of the vehicle’s value is lost during the first few years of ownership, so you are letting the first owner hit the loss rather than experiencing it yourself. Once you purchase a car that is a few years old, then the value of your car will depreciate much slower than if it were brand new.
As you can see, the advantages are much better for choosing to purchase a used car over a new car. There are other things to consider, as well. For one, when you purchase a new car that is devalued so quickly, then you may find yourself underwater. This means that you owe more on the car than it is worth. That is the worst place to be in a financing situation when your car is totaled or something happens. You’ll owe more than the car’s worth. Also, when choosing to purchase a used car, you can actually get a better brand than you would’ve been able to afford when shopping for a brand new car. You can also get cash for your car before you get a new car. There are many great used cars out there in fantastic condition. Be sure to do your research to find the best options for you and your budget. Happy car shopping, and good luck!