Do you want to buy your dream car, but you’re not sure if you should go for a new or used vehicle? With the pandemic and worldwide silicone shortages, new cars are no longer very affordable. At the same time, the used car market is rapidly emerging as the best option for anyone who wants a car in 2021. And with sophisticated service and auto shop management software, the auto repair market is advanced enough to cater to any issues used car owners may face. So what car should you buy? Keep reading to find out why we think buying a used car might be a good idea.
Lower Prices
Everyone knows that new cars cost more than used cars, but is the price difference really worth it? According to the Kelley Blue Book, the average new car price in 2019 was $37000, while a used car cost around $20000. Add in sales tax, and the cost rises even more.
These values have soared in 2021, particularly because of the pandemic and global silicon shortages. General Motors, for example, revealed that they had to increase the prices of their pickup trucks by 10%.
Moreover, the semiconductor chip crisis has made manufacturers temporarily shut down production lines to utilize the chips they have for their better-selling–and more expensive–vehicles. Some carmakers have started sacrificing advanced features too. For example, Nissan is not adding pre-installed navigation systems in at least a third of its cars.
At the same time, buyers are not slowing down, so demand and costs are high. The question is: is it worth it to pay hefty prices for a car that might not even have sophisticated, high-tech features?
Less Depreciation
A new car’s value begins to depreciate the moment you first drive it off the lot. That’s because it’s no longer a new car. On average, a car loses at least 30% of its value within the first year. That means if you spent $30,000 on purchasing a car, you would lose $9000 in the first year. You don’t realize this until you plan to resale, but depreciation is the biggest loss you face on your vehicle.
In contrast, depreciation is much slower after the first few years. An older car would lose its value very slowly as it ages. So by buying a two or three years old car, not only are you getting it at lower rates, but you are also saving yourself from huge depreciation hits that the first owner had to face.
No Dealer Fees
You can buy new cars exclusively through franchised car dealers. These dealers always charge an overhead fee that keeps their dealership running. That means costs like shipping charges, destination charges and dealer preparation charges become an added hit to your pocket on top of the price of the car. And if you live in an area with few dealers of a particular brand, you won’t get a chance to negotiate a lower price.
On the other hand, you can get used cars from used car superstores and private parties and dealerships. That means you can avoid big payments to dealers and save your money.
Get a Better Car
Let’s say your dream car is a Mercedes-Benz, but you can only afford a new Buick on your limited budget. But if you take a look at the price of a two years older used Mercedes-Benz, you’d find that it is within your budget. By buying a used car, you can easily own a better vehicle.
Along with that, used cars also usually provide a better variety at a lesser price. For example, all models that car manufacturers discontinue are available in the used car market. So you can conveniently buy the perfect car for yourself.
Easily Accessible Car History Data
Most people are wary of buying a used car because they don’t want to drive a vehicle they know little about. Nowadays, there are many services to track a car’s past. Companies like Carfax.com and AutoCheck.com can generate detailed vehicle history reports using the vehicle serial number (VIN).
You can instantly find out if the car ever had an accident or major repair, how many times the ownership changed, etc. That means you can easily purchase a car with a good history without worrying about wasting your time and money.
Lower Insurance Costs
The main factor in determining a car’s insurance cost is its value. Because a used car automatically has lesser value than a new one, insurance costs drastically decrease, especially since you need lesser types of warranties.
For example, a lot of used car owners forgo collision coverage on low-value old cars, but they won’t be able to do so if they are financing a new car.
Aftermarket Community and Auto Repair Industry
Buying a used car might seem daunting and unfamiliar, but don’t fret! You will find a sea of information right at your fingertips through countless online car sites, forums, and blogs. You can look up anything from persistent problems to the vehicles you should avoid within seconds.
And don’t worry about your used car needing constant maintenance. Finding a good auto repair shop should be one of your priorities to keep your car in good condition. An easy way to identify a reliable mechanic is by observing how they treat their customers.
Dependable shops would make use of efficient auto shop management software to ensure all processes run seamlessly and smoothly. The auto parts industry is consistently growing too, so arranging spare parts would also not be an issue.
Conclusion
If you are new to the used car market, purchasing a pre-loved one feels like an intimidating task. By keeping in mind simple tricks like looking up the vehicle history and scheduling regular maintenance sessions at a capable auto repair shop, though, a used car would become your best purchase. So go ahead and make an informed purchase, and do your wallet a favor by investing in a high-grade used car.
