It’s time to purchase a new vehicle and you’re faced with a decision—do you buy your next vehicle brand-new or pre-owned? There are a lot of options you must consider with both choices and while buying a car brand-new might sound more enticing, buying a pre-owned vehicle has a lot of great advantages for both your preferences and budget. Here are four reasons why we recommend purchasing a pre-owned car:
Expand Your Options and Affordability
Dreaming of owning an Audi, BMW, or Mercedes-Benz but can’t afford a $500+ monthly payment? A great advantage of buying used is being able to save a lot of money on purchasing a make or model that you wouldn’t normally be able to afford brand-new. At the end of the day, price is super important. Purchasing a pre-owned vehicle allows you to save on monthly car payments, especially with the amount of interest you are paying. Also, think about the options that you could afford in a pre-owned vehicle—leather seats, moon roof, navigation, third-row seating, and so much more!
Reduce Fees and Insurance Costs
Even though the value of the vehicle you are purchasing will be lower than what it was as a brand-new vehicle, this will help you save big on sales sax and insurance premiums. The cost of sales tax and car insurance are affected heavily by the value or sales price of the vehicle you buy. Since a used vehicle is valued less than a brand-new car, the cost of insurance and taxes should be less. You will also be able to save more on car insurance because you won’t be required to be covered for collision. Another trend we have seen is the increase in registration fees in many states over the years. States are trying to generate more revenue from these fees so buying pre-owned is another way to save during the purchase process. Click here to find out what the sales tax is in your state for car purchases.
Certified Pre-Owned
Purchasing a certified pre-owned vehicle can give you peace of mind when it comes to repairs. These vehicles can minimize your risk of purchasing a car that has hidden problems (AKA—a lemon). Certified pre-owned vehicles are cars that meet a manufacturer’s standards and come with a special warranty. These programs do vary by manufacturer so we recommend doing some research on the certified pre-owned program for the specific vehicle you are interested in before signing any papers. These resources can be found on the manufacturer’s website or at the dealership. Another awesome perk about certified pre-owned vehicles is that manufacturers will offer incentives and finance specials on these types of vehicles.
Reduce Depreciation
Depreciation is definitely something every car shopper should be aware of when purchasing a vehicle. Did you know that new cars will depreciate by 20 percent as soon as they are driven off the lot? If you bought a new car yesterday for $20,000 and decided to go trade it in the next day, you can bet that you will lose a few thousand dollars. Since the first owner will have absorbed the majority of the depreciation from owning the vehicle for the first year, the person who will buy that car secondhand will not have to worry about losing equity as rapidly. Industry experts recommend purchasing a pre-owned vehicle that is 2-3 years old because it is cost-effective. These vehicles will usually still have a warranty and are less likely to experience major issues.
Purchasing a vehicle can be a stressful experience. We are dedicated to making the process as smooth and easy as possible. At Larry H. Miller Dodge Ram Avondale, it is our goal to answer all of our customers’ questions and provide helpful resources. Visit our blog to access some of these resources, or stop in to find out how we can make your next car-buying experience both stress-free and memorable.