When buying a vehicle, buyers are always faced with the dilemma of choosing a brand new over a used one. Now there are a lot of pros and cons for both choices. You might think that as long as you can afford it, brand new is always the best choice. Well, if money is out of the question, why not? Right? But since when was money out of the question? When buying anything, money is always part of the consideration, and that’s why buyers want more options. This article will make a case for buying used vehicles over brand new.
The Wisdom of Buying a Second-Hand Vehicle
A lot of buyers won’t even get near a new vehicle because of the prohibitive prices. With a used vehicle, you can save on insurance and taxes. Although the interest rate of financing will be higher, the entire amount of interest you’ll pay throughout the loan will still be lower because your vehicle is cheaper. But there are a lot of advantages to buying used vehicles than just money.
You can buy a better vehicle
Since second-hand vehicles are less expensive, you have the option of purchasing a better one. A used SUV in Phoenix Arizona is cheaper than a brand new sedan, and in most cases, more capable.
Used vehicles have lesser depreciation
Depreciation starts hitting a brand new car the moment it gets out of the dealership. Depreciation is the value of the vehicle dropping as it gets older. This happens in the first few years of owning the vehicle and gets lesser later in its lifetime. By getting second hand, you let the first owner get the brunt of depreciation while you get a less expensive vehicle that has a slower depreciation rate.
You won’t owe more than the value of the vehicle
If you get a brand new car, it’s not uncommon to get an underwater loan. Because a second-hand vehicle is not as expensive, you don’t need huge financing and are less likely to get underwater.
Know the Vehicle’s History
One of the fears people have in buying a used vehicle is not knowing its history. This can’t be taken for granted because the possibility of buying a lemon is real. But nowadays, it’s not difficult to know the history of a vehicle anymore. There are a lot of companies that specialize in understanding the history of a second-hand car. Before you purchase, knowing the vehicle history is the first thing that you should know. With a vehicle history report, you can know the car’s title history, maintenance record, collision information and repair, and how many owners had it before you. On top of this, you should also take an independent mechanic with you before buying the vehicle.
Buying a used car is a good option if you need a vehicle, but don’t want to shell out thousands of dollars. There are a lot of advantages to it, and with caution, you can avoid buying a lemon.