There are several benefits to purchasing a Pre-Owned vehicle, as opposed to buying a brand new vehicle. In the current economy, used vehicles are selling more than ever, while providing stable comfort to get individuals and families from Point A to Point B.
Price – It is most often called ‘sticker-shock’ when a person views the price of a brand new vehicle on the sales lot. Buying a new car is most definitely more expensive than purchasing the same vehicle in used condition. The price will not only be lower, as with respects to the actual cost of the vehicle, but the insurance cost for a used vehicle is most always less expensive for a used vehicle. Depending on state, registration for the purchase of a used car is also less expensive than that of a new vehicle.
Depreciation – When a new car leaves a sales lot, it is said to lose fifteen percent of its sales value, immediately. By year two of owning your new vehicle, the depreciation is said to double to thirty percent. The first owner of a new car will take the largest drop in vehicle depreciation. However, in reference to a used vehicle, this is the exact opposite. The first owner of a used vehicle will face the least amount of vehicle depreciation.
Pre-Owned Certification Programs – There are several benefits to purchasing a used vehicle that is certified. This certification process started with luxury brands such as Mercedes. Now, most all manufacturers adhere to these programs. Some of the benefits of a certified used vehicle include:
• Certified vehicles will go through a very thorough process of inspection. This inspection process goes beyond making sure everything works under warranty. This inspection will extend into that of what may or may not work in the near future.
• Certified vehicles will only receive their certification with considerations of low mileage, and with little to no damage history.
• When financing a used vehicle, it is often the case that lower interest rates will apply for certified pre-owned vehicles. When taking out a loan, every penny counts, and this discount can be substantial.
• Warranties apply to most certified used vehicles, that will extend beyond that of the vehicle’s basic warranty. It may include benefits such as: roadside assistance, engine repair, etc. This can also be inclusive with the warranty that may still remain on the vehicle.
Cost to Repair – As a vehicle’s year of creation passes, the parts become more available to the average body shop. Should it be the case that your used vehicle needs repair, the parts will become less expensive and more available with time. When new vehicles are produced, extra parts are not a priority for a manufacturer. It is often difficult to harbor repairs that are not included in a new vehicle warranty, and if a warranty applies, it may take awhile before the parts can be delivered from the manufacturer.
This also ties into the lowered price of insurance. Should your vehicle be damaged, insurance companies are aware of the above facts. As the price to repair your used vehicle will cost less, your insurance price will reflect this.
In a tough economy, used cars are becoming more and more popular. Their reliability to families and cost to the individual will continue to be beneficial.