Are you in the market for a new car? Although you might be tempted to head to that brand-name dealership and test drive this year's latest model, you might be better off buying a car with a little more experience. Here are three reasons you should buy a used car, and why you won't regret your decision later:
1: You Can Act As the Critic Instead of the Cheerleader
If you buy a brand new car, you might revel in those updated features. As you drive your friends and family members around to show off your ride, you might find yourself happily explaining additional options and overlooking minor inconveniences. After all, who cares about the uncomfortable seats when they are heated?
However, when you buy a used car from a place like Auto Max, you might tend to be a little more critical. Instead of being dazzled by new and improved features, you might look closely at the things that are wrong with the car, which can help you to get a clearer picture of the vehicle.
One of the best things about used cars is that they have a history. Instead of relying heavily on the manufacturer's warranty, you will be able to inspect service records and vehicle history reports to see how the car really holds up. In addition to having a mechanic professionally inspect the car, you can carefully analyze interior upholstery stitching or exterior body damage. When you understand the car's history, you can decide if the car would work with your lifestyle and budget.
2: More Room to Negotiate the Price
When you shop at name-brand dealerships, you will be faced with a set price range dictated by the company corporate office. Although new car salespeople can be helpful and friendly, they might not be able to do a lot for you as far as the price is concerned.
However, used car dealers typically offer a huge variety of different makes and models, so they aren't bound by the dictates of any one car manufacturer. Unlike new car dealers, who might receive a single shipment of brand new rides, used car dealers might get their cars from online auctions or from mechanics who have recently refurbished the vehicles. Because they have the opportunity to buy from a larger pool of cars, they can get better prices on merchandise and pass the savings on to you.
How much do you think that brand new car will depreciate when you drive it off of the lot? Although you might assume that your new ride will hold its value, that shiny new car will be worth a lot less the second you go under contract. In fact, new cars lose an average of about 11% of their value when you drive them home. After five years, your car will only be worth about 37% of what you paid for it initially. To put those numbers into perspective, if you buy a car for $10,000, it will be worth $8,900 when you get it home, and $3,700 five years later.
However, when you buy a used car, you let someone else deal with this dramatic depreciation. Because used cars have a track record and comparable resale values, you won't have to take as much of a loss. Instead, your car's depreciation will be based largely on the make and model you choose, how well you care for the ride, and the age of the car. As you shop, remember that cars typically depreciate at a rate of 15-20% per year. This means that a two-year-old car should sell for about 30-40% less than it would have the year it came out; saving you boatloads of money.
By investing in a used car, you can have the peace of mind of knowing that you got a great deal.