We all love the look, feel, and smell of a new car, and driving around in that just-released model can be pretty enticing. But if you want to be practical about your car-buying decision, it pays to go for a used model, and there are a lot of benefits that come with it. Here`s a fun fact, too: the average individual will own approximately 13 vehicles in their lifetime, and each vehicle can cost about $30k, according to the National Automobile Dealers Association. So think about it – if you buy all your cars when they are three years old, you can potentially save almost $130k in your lifetime. But if you`re still on the fence about whether to buy a new model or a second-hand one, here`s a comparison between new cars and used cars: which is best for you?
Understanding what depreciation does
Here`s something to think about: depreciation is real, and it will be more annoying when you buy new, as confirmed by Young Automotive, certified used car Utah specialists. You probably have an idea that a vehicle will lose 20 percent of its total value once you drive it out of the lot. In a single minute, your $30k car can lose up to $6k.
After the first year, the wear and tear on your vehicle, not to mention the mileage, can decrease its value a further 30 percent, or $9k. Granted, you will not feel the depreciation right away – you will only feel it once you try to trade or sell your vehicle.
But to give you a better idea, here’s an example: if you buy a new car at $30k and you sell it after three years for only $15k, it will have cost you $15k in its depreciation. But if you purchase the same vehicle, but it’s three years old, you can purchase it for only $15k. After three years of using it, you can sell the car for $10k – and this will have cost you just $5k in depreciation.
Do away with the `stigma` of buying used
In the past, people would sell off their used cars just to ‘get rid of a problem.’ But it’s not the case today because the latest used models are way better than their past peers. The deal about used cars nowadays is that they are more reliable and maintenance is not that big an issue. For starters, recent models are more reliable and dependable compared to models from the past.
It’s quite common for a vehicle nowadays to deliver over 10k miles of driving before requiring any repair. And when it comes to maintenance, while all vehicles will require maintenance such as tire rotations, oil changes, and brake jobs, the relatively newer models can last further in between scheduled maintenance checks, and even the brake pads and tires can last longer as well.
Think of the advantages
Clearly, buying used is easier on your wallet – you already know this. But it has other distinct advantages as well. You can take advantage of lower insurance premiums since the vehicle’s value is less than a new car, and you can choose to drop comprehensive and collision coverage to save more. Registration is less expensive, too, and because you can save up to 30 percent on your purchase, you can even level up and go for a luxury model.