For some, a pre-owned vehicle isn’t as appealing a new one. After all, nothing can quite compare with that new car smell. However, when it comes down to it, that new car smell can be pretty costly. Not only do pre-owned vehicles have smaller price tags than new ones, but they also come with a host of additional benefits. If you’re in the market for a vehicle, we’ve put together a list of reasons why a pre-owned vehicle might be right for you.
The biggest benefit of buying a used car is also the most obvious: pre-owned vehicles usually cost much less than new ones. This means that you can buy a used car with a comparatively small loan, which will typically have smaller monthly payments and less total interest than a larger loan.
In addition, buying a less expensive vehicle may enable you to make a larger down payment on your purchase or even pay cash in full. All in all, paying off a loan for a used vehicle is a lot more affordable and quickly than paying off a loan for a new vehicle with a large stick price.
With a pre-owned vehicle, the financial benefits don’t stop after you make your purchase. One of the biggest factors in a car’s worth is depreciation. This is the decrease in a car’s value over time.
Depreciation rates vary from vehicle to vehicle, but on average, most new vehicles lose 20% of their value within a year of being purchased. Therefore, if you bought a new vehicle for $30,000 and sold it after a year, you would only be able to get $24,000 for it. However, after a vehicle’s first year of use, depreciation rates drop to only 15%.
So if you bought the same car in the example above but pre-owned after two years, it would only cost you $20,400 to purchase it. Also, you could sell it a year later for $17,340. Depreciation can work to your benefits if you’re a savvy shopper who wants the benefit of a newer vehicle who wants a better financial deal.
Because most used vehicles are worth less than new ones, they also cost less to insure. Additionally, they often cost less to register and have lower sales tax rates. Buying a used vehicle can clearly save you quite a bit of money. In fact, it might save you so much money that you can afford a nicer model than the one you had originally planned to purchase.
Due to the price differences between new and used vehicles, some believe that used vehicles are less reliable than new ones. This is little more than a myth. Thanks to improvements in vehicle manufacturing, most modern cars can travel for 100,000 miles before needing major repairs and can last for over ten years. Although there are plenty of lemons throughout the car market, the pre-owned vehicles sold at trustworthy auto shops are just as reliable as new vehicles and almost always undergo rigorous tests and inspections to ensure they are in top condition before being sold.
Some people may argue that used vehicles are more reliable than new ones, as a buyer can research a used vehicle’s flaws before purchasing it. Using sites like AutoCheck and Carfax, a used car buyer can look up a vehicle’s history report, which will include information about its previous owners, accidents, and repairs.
This means that if a pre-owned vehicle has a history of radiator problems, a potential buyer would be able to find out about this beforehand. This is not true of new cars. A new vehicle could have a poorly-installed radiator and its owner would be none the wiser. Pre-owned vehicles can sometimes be more reliable than new ones, as their flaws are documented and available to the public.
Buying a Pre-Owned Vehicle in Rochester
When buying your pre-owned vehicle, you want to work with a dealer you can trust. At Hagan’s Motor Pool, we are the leading pre-owned car dealership for customers in Alton, Barrington, Berwick, Dover, and Rochester, NH.
We offer a wide inventory at excellent prices, and we would love to help you find your dream car. We also perform excellent and affordable maintenance and repairs, so whether you’re looking to buy a pre-owned car or need to have your current one fixed, give us a call today!