Buying a used car is surging in popularity in 2020, to unprecedented levels..Buying a new car is always definitely a temptation, however, compared to investing in a used car it is not always the best approach here are many reasons why you should look for used cars for your next purchase:
Ivan Drury from Edmunds, an automotive data-analysis company, said- “New cars are getting so expensive, and they are e getting out of reach for many car shoppers, but there are so many more affordable high quality used vehicles, that the market is shifting in the direction,”
Apart from the fear of investing a considerable amount, one of the major reasons behind the increasingly high demand for buying used cars in the pre-owned vehicle certification and extended warranties that ensure peace of mind and less anxiety...
Continuing further, let’s take you through the 5 prominent reasons why shoppers prefer to invest in e pre-owned cars.
1.New Cars Depreciate Very Quickly
When you buy a brand new car, its value depreciates immediately, often by thousands of dollars. The moment a new car leaves the showroom, its value starts depreciating. On top of it, if you have borrowed money for the new car, you already bear the loss of 30% of the car’s total value. Keeping all such aspects in mind, buying a new car cannot be considered wise unless you are passionate about buying specifically buying the latest features in new cars.
2.Get Certified Pre-Owned Cars
Most of the people pass over the idea of buying a used car as they assume that they will not be receiving the new vehicle warranty. Therefore, it is wise to investigate the option of certified pre-owned cars. Many automakers run various programs on used cars to reduce buyers' anxiety. This certificate type includes- warranty based on mileage, condition, roadside assistance, etc. Also, many pre-owned cars come with an extended warranty, offering great protection and value.
However, just don't go for CPO cars to get a warranty as many dealers and companies offer purchasing a warranty on used cars.
3.Used Cars Last for Years
Some people have the misconception that used cars do not last long or can deteriorate quickly. There is no truth in the 100,000 miles benchmark anymore. Many automakers have way passed the mileage meter and even offer warranty that go beyond it. A 100,000 miles mark on the odometer should not be a parameter to stop you from buying your favorite car.
4. Helps to Cut Insurance Cost
When juggling between buying a pre-owned or a new car, insurance cost is one of the factors to be kept in mind. The basic thumb rule is, the more the car value is, the more the insurance company has to pay, in case of any damage later on. As compared to a brand new one, a used car costs less and therefore the depreciation value won’t be a burden on the insurance company.
5. Lower Registration Fees
Most of the states decide the car’s registration fee based on the age and value of the car. A car with lesser market value will be charged with a nominal registration fee, whereas a new car may demand hefty registration charges. For instance, in Massachusetts, the excise tax on cars goes down considerably as the car gets older.
6. Used Car Variety
Every year 300 to 400 new models launch in the US but you will be surprised to know that the pre-owned car market offers much more variety. Many car makers trim and discontinue models and therefore your car must be just lurking around for you to find it.
The Final Word
In the past, purchasing, a used car posed an element of risk... Now, things have changed to a considerable extent. Due to the several used car buyers’ programs which come with additional benefits makes used car buying a much smoother process.