Why Buy Used

The average sale price of a used car is estimated at about $13,900, the average price of a new car is estimated at roughly $27,800. With today’s economy, this presents the presence of a huge used car market. When consumers are shopping for a vehicle, they want the best possible price on the car they are purchasing, so it’s no surprise that the used car market is the fastest growing sector of the industry.

A Good Value

It’s obvious that used cars cost less than new ones. But to really see true savings, you have to look at overall owner costs; depreciation, fuel usage, insurance, interest on financing, maintenance and repairs, and sales tax. A well-maintained car should remain dependable for at least 10 years and 100,000 miles. The average trade-in is only 4 1/2 years old with just 41,000 miles on it. This results in a lot of good cars available with lots of life left in them. If you are set on a new model, buying a used car of the same style can save a lot of money. Used vehicles are often the best values you'll find in the automotive market. This is especially so for late-model ones. Not only is the price lower than a comparable new car, but ownership expenses such as collision insurance and taxes are lower, and a used vehicle has already taken its biggest hit in depreciation.

Quick Depreciation

There is a very steep decline in a car's value in just the first year of the car's life — from 20 to 45 percent. Depreciation is a big key to used-car savings. A three-year-old vehicle has already taken its biggest hit in resale value. Big depreciation for new cars means lower prices for used cars, which in turn mean lower finance charges and sales tax. When combined, that can cut overall owner costs dramatically. Several factors determine depreciation, including the model's popularity, quality, supply, and whether or not the vehicle is of the current design. When a car model is totally revamped, especially if the name is changed, the older version usually drops in value more quickly. Those used cars are generally good buys.

Green Alternative

There is no doubt that buying a hybrid or very efficient new vehicle is a great way to reduce your carbon footprint, but if you really want to do something about global warming, get a used car. Hybrids do get great gas mileage, but it takes 113 million BTUs of energy to make a Toyota Prius. Because there are about 113,000 BTUs of energy in a gallon of gasoline, the Prius has consumed the equivalent of 1,000 gallons of gasoline before it reaches the showroom. That is a lot of carbon, and it would take many miles to make up for that. With a used car the debt has already been paid. Of course, it has to be something fuel efficient to make a difference, but not necessarily a hybrid.

An American Bargain

American cars tend to be among the best used-car values because they provide more quality for the money. Some consumers think American cars are not as good those from Japanese automakers, but this is not true. In turn, that assumption helps American cars depreciate more quickly and makes them better used-car values. Structurally and mechanically, American cars are some of the most durable cars in the world, and they are often less expensive to repair because of lower-priced parts, and more common repair facilities.

One thing that has made used cars more appealing is their improved reliability. As a result, buying a late-model used vehicle is not as much of a risk as it used to be. When properly maintained, today's vehicles should go well past 100,000 miles, and many could reach 200,000 miles without a major breakdown.

Safety Yes, buying a used car means you won't have the latest technology and safety features. But a new used car is likely to have more common safety features such as antilock brakes, traction control, and side air bags. So, buying used does not mean totally foregoing safety.

Off-Lease cars

Leasing demands regular upkeep and maintenance, so used cars that were formerly leased are often a good value. As leases have become popular, large numbers of well-maintained, 2- to 3-year-old cars are coming off lease in increasing numbers. These vehicles practically qualify as new, even in appearance; and usually are still covered by the remainder of their original warranties.

Used cars have become better values than ever. A new car depreciates quickly. Buying one that is just a few years old can save thousands of dollars. It will still offer newer technology, safety, and options, so the used car buyer does not have to give up a lot for a bargain. If more people bought used, there would be less of a demand for new cars, less would be produced, and there would be a positive effect on the environment, as making a car, alone, creates high emissions.

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