Written by sales representative Tyler Harness

Everyone wants a new car, but what if you could get the same quality at a cheaper price?

The three reasons you should consider a used car instead of a new one are:

  1. Avoid depreciation

  2. Spend less money

  3. Get the same quality car

First, you need to look at your future. If you buy a new car, you lose thousands of dollars the moment you drive off the lot. Emmet Pierce, writer for the Simple Dollar wrote “CARFAX, which tracks the histories of automobiles, says that new cars typically lose 10% of their value immediately after purchase. During the first year, the value can decline by another 10%. And on average, new cars lose 60% of their value within five years,” (2018).

A new car takes its biggest depreciation in the first two to three years. Cars.com, a site used by many large car dealerships across the U.S, stated “On mainstream vehicles, expect your new car to lose at least 30 percent of its value in the first two years of ownership,” (2016).

Matt Smith, writer for Cargurus, another site used by car dealerships to advertise their vehicles to consumers, stated “While some models handle depreciation better than others, most shoppers can expect a new car to lose up to 50% of its value within three years of rolling off the lot,” (2019).

Now that you’ve learned why buying used is a better investment for your future, let’s look at why it’s great for your pockets right now.

The price of a vehicle is usually marked down from retail price based on age, mileage, and the “used” condition of the car.

When you buy a new car many dealers add things like pinstripes, or “anti-rust” coating that get your attention. However, those things can be done at home for less than the dealership charges, and they do not actually add to the value of the car.

If you finance a used vehicle, you’re monthly payments will be lower, and used cars have much more affordable insurance.

Pierce quotes Carole Walker, executive director of the Rocky Mountain Insurance Information Association, with another the reason new cars have more expensive insurance is because of all the electronic gadgetry. "Many newer models are increasingly expensive to repair because of all the new technology," (2018).

By buying a cheaper car, you can shop a higher class. Pierce gave the example “A Mercedes or BMW that would be out of your price range when new might be affordable to you after it's been on the road for a year or two,” (2018).

You are less likely to buy a lemon brand (Pierce, 2018).

Pierce said, “Mechanical problems don't always surface until new models have been on the highway for several years,” (2018).

For peace of mind, you can check the vehicle’s history records for its service history, damage or accidents by using Carfax or Autocheck.