8 Reasons Why Millennials Should Buy Used Cars
It’s a well-known fact that millennials are a generation facing substantial financial problems that their predecessors didn’t experience. A spike in student debt, lower wages, and a huge underemployment rate all contribute to the money woes of millennials. Considering that 52% of low wage employees are millennials, it’s not hard to see why this generation would want to save as much money as possible when car shopping. Let’s take a look at eight reasons why buying a used car from a used car dealership in Kansas City is the best option for this group.
See Our 8 Reasons To Buy Used
It’s Budget Friendly
Buying used allows millennials access to vehicles they wouldn’t be able to afford new. Models that might be too expensive straight off the lot become much more affordable once they have a “used” label slapped on them. Purchasing a two- or three-year-old car saves thousands of dollars, while still delivering a high-quality product. Additionally, the lower costs associated with a used car often permit buyers the opportunity to pay in cash and avoid interest fees tied to auto loans. For debt-riddled young millennials, this may be an attractive proposition.
Appreciate the lack of Depreciation
Used cars are just a better bargain. As soon as a brand-new vehicle leaves the dealership, it begins to depreciate in value. Buying such vehicles is a poor strategy for millennials who are trying to save money and stay within a budget. The cost of a vehicle directly from the dealership is simply a bad investment strategy. New cars can lose up to 50% of their value within three years after purchase. Although a used car will still continue to depreciate, buyers will lose less money in the end if they take home even a slightly older vehicle.
Mix It Up with an Exciting Choice
Buying used cars opens up a vast selection of makes and models to the millennial buyer. Want a retro model that is out of production? No problem. How about a luxury car for a fraction of its original price? That’s now doable. Numerous styles and amenities are available depending on the make of car, and purchasing used vehicles lets the buyer select the best option for their budget and lifestyle.
Purchasing brand-new cars limits the features available for those models. Instead of taking home a new car with basic amenities, shoppers can find older makes with superior features for lower prices. Not to mention, because of the low sticker price, used cars can be replaced more frequently when buyers are ready to change models. The money saved buying a used car can be used to upgrade when the opportunity arises.
Get That CARFAX
If millennials are worried they may end up with a clunker, they need not fear. Vehicle history reports are a useful method of determining reliability and safety. Reports are cheap and easy to order. Often, they are made available by the dealership. Companies such as CARFAX or AutoCheck can help buyers decide whether the car in question is worth the risk they take by purchasing used. Shoppers can view accident information, the number of previous owners, repair history, and other important data. The availability of this data makes the process of buying a used vehicle less of a hassle and worry for those money-conscious millennials who don’t want to take on a lemon.
Purchasing from a previous owner is not the only method of buying a used car. Many manufacturers and dealerships offer certified pre-owned cars, which generally include warranties and other benefits such as roadside assistance. This can protect buyers from unexpected used vehicle failures. The warranties offered depend on age, mileage, and other factors, but savvy shoppers should be able to take advantage of CPO offerings to gain a leg up in the market.
In most cases, older cars are cheaper to insure. The insurance company uses the value of the vehicle as a factor when determining the rates to charge drivers. The risk that they will have to pay out a substantial amount for a damaged new vehicle is reflected in the rate charged. Insurance costs are a critical expense that millennial buyers need to consider when purchasing a new or used car. Considering that younger drivers often have higher insurance rates, any method of cost savings should be considered.
Less Registration Frustration
Similar to insurance rates, taxes and registration fees in many states are lower for used cars when compared to new. Registration fees are often based on the make and model of the particular vehicle. The current value of the car will be reflected in the fees buyers pay, and the first three years of registration are the most expensive. Purchasing a car that is three to five years old can save big bucks in fees and taxes.
Cars Now Last For Longer
Most vehicles produced recently have a long life ahead of them. Many brands are built to last and, if properly maintained, can exceed 200,000 miles before serious issues arise. Asian-produced cars have the highest life expectancy, with American made cars constantly improving their reliability standards. European models have the poorest life span compared to their peers. Millennials worried about the life of the vehicle should search for cars from high performing brands that are expected to run well into their old age.
Researching Models is Now Easy
Millennials are a technologically experienced group who tend to get their information from the internet. What does this mean for budget-conscious millennial car buyers? The majority report extensive research before their first car purchase and tend to scour the web for the best reviews and deals. In an era where social media rules the day, it is easier than ever for buyers to research their brand choices, make wise decisions about budget and expenses, shop for insurance rates, and locate cars that fit into their price range and style preferences.
With vehicle history reports a click away, buying a used car is now simpler and safer than ever. By purchasing a used car for sale in Kansas City, Kansas millennials will save money that would have been wasted through depreciation, fees, and high insurance rates.