When to Buy a Used Car Instead of New
When it comes to buying a car, there are plenty of reasons to choose used over new. For one, new cars are expensive. Buying a new car is most likely going to drain your wallet. The average cost of a new car is more than $37,000. Compare that to the average price of a used car, which is around $20,000. That is almost $17,000 in savings. Moreover, the average price of a car continues to increase.
On top of that, it cost more to finance a new car compared to a used one. You also have to factor in the cost of car insurance, warranty, and repair cost, which is more costly on a new car than a used one. In most states, you have to pay a tax for a new car.
Given the higher price of most new models, that means having to dish out a lot of money in taxes compared to a used car with a lower price. With a used car, you usually have to pay a sale tax when you register or title the vehicle.
Why Buy New
There are plenty of reasons to buy a car new. For one, it has no history. You don’t have to worry about any problems the previous owner might be hiding. You don’t have to worry about wear or tear or any problems that the car might have of which you are unaware.
New cars also come with a warranty that is included with the price so you have peace of mind in case anything happens to the car.
With a brand-new car in Kansas City, there are usually very few miles on the clock. All the parts are brand new from the factory. This makes it much easier to buy a new car. You don’t have to pay for a service to get information on the car’s history. You don’t have to pay to have it inspected before purchase. You don’t have to wait for a title and complete lots of paperwork. The purchase process is much easier. You also don’t have to worry about finding the right model.
With a new car, you have the option to customize as you wish. You can change almost anything your heart desires in a new car. You can pick a different color, wheels, interior, and body. There are endless options when it comes to customizing the interior with the latest technology such as GPS, touchscreen, leather seats, and other safety features.
Buying Used Costs Less
All the advantages of a new car are also its biggest disadvantage. The biggest reason to buy used over new all deal with the issue of cost. Because of all the latest features and production methods, new cars are more expensive. Everything associated with new cars includes an added expense.
When you buy a used car, you pay a lower cost for everything. For example, you pay less in insurance for a used car compared to a new one. The fact is when a car is worth less, it costs less to insure it for comprehensive coverage. Registering a used car is also less expensive than a new one and registration costs continue to decrease every year. Repairs are also an issue. Brand-new cars cost more to repair than their used counterparts. Most of the time, parts for used cars are more readily available.
One thing most people don’t think of when it comes to why a used car is better than a new one is the issue of loss. If you get into an accident while driving a brand new $50,000 car, you incur a greater loss than you would driving a $5,000 car. Depending on your insurance and who’s at fault, you may end up losing thousands of dollars because your car costs a fortune.
It costs a lot more to insure a new car than it does a used one. You have the option to forgo comprehensive insurance for a used car and simply go with a basic plan. This is not so with a new car. Most insurance companies won’t even allow you to insure your car with anything less than a comprehensive plan.
Another big reason why it’s better to buy used over new is that cars depreciate much faster in value compared to a house. A car just isn’t as good of an investment as a house that can increase in value. You save money buying used just because you can usually sell a used car for at or a little less than the price it was paid for.
New vehicles usually depreciate about 20% of their value right when they leave the dealership. For example, a $30,000 car will lose $6,000 of value immediately after purchase. Factor in wear and tear and mileage as the car gets used and the value drops even faster.
This hurts the most when it comes to selling the car. If you buy a new car for example for $30,000 and sell it for $15000 after a few years, you have lost half the value of the car. Compare that to a used car that is bought for $15,000 and sold for $10,000 within that same time window. You have lost less money over that same timespan as you would if you were selling a brand-new vehicle.
There is no denying that newer cars come with more bells and whistles. They usually come with the latest technological features. Safety is also improved on newer models. There are new tools such as cameras, automatic braking, keep lanes assist, and adaptive cruise control. New cars are also more fuel efficient than older models. They are usually made with lightweight materials that allow it to burn less fuel. Depreciation also depends on the make and model of the vehicle.
Despite all the benefits of a new vehicle, a used vehicle is still a better buy because it costs a lot less. If you have the money to burn, then a new vehicle might be the right option. However, at the end of the day, nothing beats saving money. Let us go through your options together with you at Zeck Ford new and used car dealership in Leavenworth, Kansas.