Why Buying a Used Car Can Be a Better Option for Budget-Conscious Buyers

Posted Monday, Apr 24, 2023

 

There are many ways that buying a used car can be a better cost-saver than buying a brand-new one. Used vehicles can cost a lot less, but that’s not the only way they offer savings. You will spend much less on the car due to insurance, depreciation, and fees.

The average monthly payment for used cars in 2022 was just $526, while new cars require at least $716. In total payments, buying a used car can actually help you save thousands.

Let’s take a closer look at the different reasons why buying a used car can be a great idea for budget-conscious buyers!

Getting the Same Models at Lower Costs

Suppose you have been eyeing a particular model for some time, but the cost of a brand-new car is just too much. Buying a used car will let you get the same features and models but at a much, much lower cost!

Of course, you can try and save up to get the brand-new model, but it can take a lot of time to make a down payment that will lower your interest rates. Plus, as you will learn below, vehicle depreciation also factors into the cost.

If you can’t wait too long and want to avoid depreciation, buying a used car is a good option. You don’t have to go for a model that has been used for years and has been damaged. You are sure to find a good deal in great condition if you look in the right places.

It is also necessary to note that car manufacturers don’t really re-design every model each year. So, even if you go for an older model, you will essentially get the same style, tech, and features as the brand-new model you have your eye on.

Saving on Auto Insurance

Buying a used car is definitely less in car value than brand-new varieties. But this means that the car insurance will cost you much less too.

You should note that some luxury cars might cost more in terms of auto insurance. So, we do recommend going for a quality car instead of a luxury vehicle if you are concerned about paying a lot with regard to car insurance.

Plus, you will get a better credit score as you age, as well as get more miles. This can help the auto insurance to drop further. The best option you have is to get coverage with the cheapest plan possible. It can help out if you ever need roadside assistance or get into an accident.

Slow Down the Car Depreciation

Brand-new cars lose 20% of their value as soon as you drive them off the parking lot. They have a timer attached to them when it comes to car depreciation. It might be your new prized possession, but it doesn’t mean that it isn’t losing value even as you read this.

Vehicle depreciation goes even faster in the initial year than it will in the coming years. When buying a used car, you don’t need to worry about depreciation at all; it has already fallen 30% in the first year. This will also give you are better loan-to-value rate.

Avoiding the Extra Fees

Whenever you get in touch with a car dealer for brand-new cars, you will receive a huge list of costs that will surely hurt your wallet. It can include dealer preparation and shipping charges. There might even be some hidden charges if the car dealer isn’t a reliable one.

Buying a used car will actually help you save hundreds in terms of documentation. You don’t have to buy into the add-ons either at that moment; you can always get them later after bringing the car home.

Better Availability of Spare Parts

The best benefit to buying a used car is that it can help you in the future too. Spare parts for older cars are more widely circulated and easily available. In the future, if you ever need maintenance or servicing,

it can make the entire process quite hassle-free. For brand-new cars, spare parts can be more expensive and not as readily available.

The market for used cars is also growing as more and more people turn to cheaper options. This means that the way we sell and buy cars is evolving. This allows more way better circulation of spare parts too.

Cheaper Dealer Fees

Of course, the location where you are getting the used car impacts the expected fees you will get from the dealer. However, they will definitely be less than the fees for a brand-new car. You will also get lower sales tax rates than newer cars.

How to Negotiate for Used Cars

Not every used car dealership is as friendly to customers as others. You should definitely look at online reviews that can help you find the best car dealer that has a great reputation. Sure, there is no dealer with 100% positive reviews, but go for the one that looks the best for you.

When negotiating, there are some items you can definitely negotiate on. Add-ons, financing, and the value of the car are all open to negotiation. You will be able to get a better price for cars that aren’t high in demand too. If you go for a trade-in option, it also gives you room to negotiate fees, documentation fees, dealer prep fees, and other costs. Auto Tech has a huge used car inventory where you are sure to find the best deal possible. We also have in-house financing options and plenty of room for any add-ons you want.