If you are in the market for a new vehicle, you have a lot of things to consider. The best way to determine the type of vehicle for you is not by thinking about which type of car is the best looking or most popular, but by thinking carefully about your lifestyle and which type of car best suits your lifestyle. The following article outlines some reasons why buying a used vehicle is better than buying new. Even if the used car needs some superficial work such as work done by Fork Auto Body, it is still usually a good investment.
Buying Used Versus Buying New Vehicles
Many people feel strongly about buying new over used vehicles, but the following list will help you to understand why there are few advantages to buying a brand-new vehicle besides the new car smell. Continue reading to understand why buying a used vehicle is always the most responsible and satisfying choice.
- A new car depreciates in value the minute you drive it off the lot: From the moment you purchase your new car and drive it off the lot, it loses about 20% of its value. During the first two or three years that you own your vehicle, it will lose 40% of its value. How is this a sound investment? Nothing else that you purchase and invest your money in will lose value at such a rapid rate. Buying a quality used vehicle that is about three years old will cost much less than its newer counterpart, and is just as attractive and reliable to drive.
- Buying used allows you to pay cash: Experts in the field of finance all agree that using cash instead of credit is always a better way to manage your money. Living within your means also includes eliminating debt whenever possible, and very few people can afford to purchase a brand-new car with cash. The same is not true of used vehicles, however. Even a used car that holds its value well will cost 20% less than a brand-new model at a minimum. You can save up the money for a new car over a six-month period, and then pay cash for it, effectively eliminating the need to take out a loan.
- A new car warranty is not worth the price paid: While a new car does come with a six-month to one-year warranty on parts and services, this “perk” does not make the purchase worthwhile. Since most new cars have very few problems in the first few years, you will most likely not need the warranty for major repairs. While you may use the warranty on minor and superficial repairs, the overpriced cost of the car does not offset the small amount you save in minor repairs.
- Used vehicles are just as reliable as new vehicles: While it is always important to research used vehicles carefully to find out how well they hold their value or how reliable they are, a quality used vehicle is just as reliable as a new one. This is true of used vehicles that are only a few years old. Used cars with 100,000 miles or more are an obvious risk. Make sure that you take these cars to a mechanic that you trust to make sure the vehicle is a sound investment. If there is bodywork that needs to be done on the vehicle, take it to a place like Fork Auto Body to get a quote on repair work.