Used cars do not have the same stigma they had about 10 years ago. In fact, it’s becoming more and more common to own a used car over a new car. With companies such as Carfax and AutoCheck prospective owners have access to the vehicle’s complete history and ownership. I’ve partnered with Brown’s Alpha Romeo to bring you these eight reasons to buy used cars in 2016.
Peace of Mind: It used to be that buying a used car was a roll of the dice. Something along the lines of “Buying someone else’s problems.” The used car buyers of today, can actually minimize risk and save money while avoiding hidden problems.
Consumers who are truly worried about a used car’s potential hidden problems can also buy a certified pre-owned car. Certified pre-owned cars provide the same amenities of a new car – such as warranties, interest rates, etc. This is something that was available to used car buyers before.
We’ll get more into certification programs below.
Lower Insurance Costs: A key factor in determining the cost of car insurance is the value of the car. Because a used car has less value than a newer version, the cost of insurance should be less. In fact, even more money can be saved on insurance premiums, because some elements of car insurance can be dropped. For instance, once a car is old enough, you can do away with collision and theft coverage.
Avoid Depreciation: We all know, and are told, that as soon as you drive a new car off the lot, you lose money (typically between 25 to 40 percent the moment you buy it) due to the depreciation of the car. By purchasing a used car, someone else has already taken the depreciation loss, and you – the buyer – don’t have to worry about paying upwards of several hundred dollars a month for your car to be losing value.
According to Philip Reed, Edmunds.com senior consumer advice editor, “Depreciation flattens out, usually after a car’s second year when the rate of depreciation dips before increasing again around year five,” so by trying to find a car that is only a year or two old, you’re hitting the jackpot.
Price: Buying used can usually save you a good amount of money, whether that’s on the car itself or on insurance or even on the registration fees. When it comes to buying a car, there is a lot of money exchanged and buying a used vehicle can help save you a little bit of money.
Owning a used vehicle also ends up costing less to repair since you can do some repairs or even maintenance work yourself.
Certification Programs: Certified pre-owned programs vary from manufacturer to manufacturer, but in essence, certified pre-owned cars are vehicles that meet a manufacturer’s established standards and carry some form of guarantee against defects similar to a new-car warranty.
Availability: Over the past few years, we saw a great decrease in our economy, but recently with the rise again, people are beginning to buy new cars, and trading in their older cars, making used cars more available.
Safety Features: By upgrading from your current car, you could have many new safety features that aren’t available to you now. Newer vehicles are coming with more and more features to keep you and your families safe, so when choosing your used vehicle, it’s easy to do the research and find a vehicle with everything you see necessary.
Reducing registration fees: As with car insurance, the fee that states charge to register a car is often based on the car’s transaction price, Reed says. And many states are increasing registration fees in an effort to generate more revenue. Buying used is an effective way to stunt those increases.