Transportation is an integral part of one’s daily life. From traveling to work to running errands, a good transportation procedure can make your activities faster and more convenient. While the public transportation system offers traveling assistance to everyone, having your own private vehicle presents more advantages that you can’t obtain through public travel.
To satisfy the needs for smooth and time-saving travel, private vehicles are considered a staple in many communities. This is why families prioritize saving up for a new car. However, vehicles come at unforgiving prices that some can’t afford. Thankfully, there are better options to own a car today, case in point: purchasing used or secondhand cars.
Used cars are usually available within your location. For instance, if you live around Colorado, you can buy used cars in Colorado Springs that are offered by authorized sellers.
Is purchasing used cars worth it? To give light on this matter, here are the benefits of buying used cars:
Cheaper Price and Lower Depreciation
Upon purchasing a new car and driving it off the lot, you’re already losing 9% to 11% of its value. Cars depreciate rapidly at 25% in its first year, then around 18% in the following years. In short, you can buy used cars at a lower price since their value has already depreciated, saving you more money in the long run.
Compare the price tag of buying the same car, but one is brand new and the latter is a used one. If the brand-new car costs USD$25,000, you can bargain for USD$13,000, meaning almost half of its value was already lost.
Since cars lose most of its value in the first year, you can also opt to sell the used car in the future and still retain most of its value.
Purchasing a secondhand car is ideal for people who want to save more from their vehicles but still acquire a good quality model for a fraction of its price. However, you should exercise caution in finding used cars because not all sellers provide licensed and high-quality options.
High-Quality, Certified Options
Scoring a secondhand car for a lower price doesn’t mean you should settle on a low-quality vehicle and service. An excellent advantage of purchasing from legitimate dealerships is their collection of high-quality car models that are certified and thoroughly inspected. Therefore, you’re not compromising the car’s condition, reliability, and quality, while you’re still going to pay less.
Dealerships follow strict standards when displaying a used car for sale. They ensure that the model has official documents to avoid any issues in the future. They also inspect the car’s interior and exterior to guarantee that it has no, or only minimal, flaws and it’s in excellent mechanical shape.
Moreover, most cars that are passed onto a new owner don’t lose their original manufacturer warranties. If you’re purchasing from a private seller, make sure to have the model inspected for any potential issues and discuss warranties with the seller.
Reduced Insurance and Registration Fees
Aside from paying less for the model itself, secondhand cars have lower insurance premiums and annual registration fees. As a general rule of thumb, a car’s age significantly affects its insurance rates and premiums for used cars are typically cheaper than brand new ones.
Furthermore, guaranteed auto protection (GAP) insurance comes into the picture. During an accident or when your car gets stolen, your car insurance will pay for how much the car’s worth during that moment, thus creating a gap between the original price and current value of your car. Thus, as depreciation has already occurred in used cars, having GAP insurance isn’t necessary.
Some states and countries assess annual registration fees in terms of the car’s model year and current value. In the first three years, the fees are typically higher. By purchasing a used car, you can avoid costly annual registration fees.
Contributes To The Environment
While cars allow convenience, freedom, and privacy, they won’t be without environmental cost. Before being released in the market, the production and manufacturing phases of a car leaves a huge environmental footprint because of materials used in the production, such as rubber, plastic, steel, glass, paint, and more.
Also, here are other perspectives on how buying used cars contribute more to the environment than fresh cars:
- Almost 30% of a vehicle’s carbon dioxide emissions happen during its production and transportation to dealers.
- Purchasing a used car lessens scraps ending up in junkyards, amounting up to 14% of non-recyclable components.
- Hybrid vehicles leave toxic wastes left from its lead-acid, lithium-ion, and nickel-metal hydride batteries.
Nevertheless, buying a used car doesn’t automatically mean that you’re doing good for the environment. You should also check the vehicle’s fuel efficiency, air filtration system, use of LED lights, and other environmental-friendly features.
Bottom Line
Cars are one of your life’s biggest, most costly investments. But it’s not always required to drive a brand-new car off the lot. Although it feels satisfying to smell a brand-new car, opting for used ones can aid your finances better while still allowing you to enjoy these benefits of having a secondhand car.
