You may be itching to get your hands on a brand new car – one that hasn’t been owned or driven by anyone else. You can select the color and get all the aftermarket accessories added before you get it as well, however if you really want to get the most bang for your buck, then read on to check out the top seven advantages of buying a used car over buying new in the automotive market.
It’s the obvious factor separating a new car buyer and a used car buyer. If you can afford a used car without getting a loan or finance, then that’s what I’d recommend. Otherwise you’ll end up paying not only the ‘new’ car price, but also the interest on a loan, and you’ll be locked into a contract for some years to come.
The minute you drive out of the ‘new’ car showroom you have already lost money on a new car that has now become instantly used. The warranty period lessens with each day you have a ‘new’ car, and so does the price – especially when a new year rolls round adding a year to the age of the car. Luxury brands are the fastest to depreciate, and you can see this when you do a search for Mercedes, Audi, or BMW for example.
3. Dealer Fees & Sales Tax
Dealers often add on shipping fees, destination costs, and what’s commonly known as ‘Dealer Preparation’ just to bump the price up. Used cars don’t have shipping costs involved unless you live in another state and are getting one shipped. Oh, and don’t forget the sales tax on new vehicles which can add up to thousands of dollars you’ll never see again. Every state has laws and percentages associated with taxes on new cars, however not all states have sales tax on used cars (especially if you buy privately like in Georgia), so it’s worth doing the research where you live.
4. Registration Fees
For the first three years of ‘new car’ ownership you will pay a premium in registration fees. This starts to decrease as the car loses value and gains age. By purchasing a used car that is more than three years old, even better more than five years old, you end up saving around the thousand dollar mark. It’s a huge saving.
5. Additional Accessories
Yes you can buy all the accessories when purchasing new – but at a premium cost, and they don’t actually add any value in the used car market. So again, you’re throwing money away. However, if you find a used car with plenty of accessories like a sunroof, sports kit, tinted windows, color-coded dash or side mirrors, or anything else you can think of within your budget – then bingo! All part of the lower used car price. Even if you want to add aftermarket accessories, they won’t cost as much as purchasing them through the new car dealership.
Sure, there are some amazing new cars coming out – but there are so many more available secondhand including companies that have stopped such as Pontiac, SAAB, Mercury or Hummer, or model lines that have finished production such as the Chevrolet Impala, Ford Fusion or the Cadillac CT6 in North America.
7. Private Sales
No new car goes through a private seller. In fact, if you buy from a private used car seller, not only do you save in sales tax, but also having the opportunity to barter the price down. You don’t have pushy salespeople offering you finance or accessories, or reading from a ‘Sales’ script, just the owner willing to tell you the good and the bad of the car and it’s time with them.
In the end, it makes sense to buy a used car. I’ve bought a new car and know first-hand how much those added new car accessories cost, and how much I lost when I sold it three years later. I also know of times such as recently when I’ve sold my 2005 SAAB 9-3 for a profit of $1,000 over what I paid six years ago. You can actually make money if you look after your used car and keep it regularly serviced. I’ve managed to make money on three used cars over the years. Just think of the savings you make by purchasing a used car and what you could spend that on!