Why Buy a Used Car
There’s nothing quite like that new car smell, but is that really worth an extra $13,500. According to Kelley Blue Book, in 2015, Americans spent an average of more than $33,500 on new vehicles, while the average used car cost just over $20,000. While the allure of a shiny new car can be hard to resist, there are so many great reasons why you should buy a used car.
First and foremost, the most obvious reason, buying used saves you money! In fact, based on the data cited above, you’ll save about $13,500 by choosing the average used car instead of the average new car. The reason behind this drastic savings is simple, new cars depreciate, and fast! According to Consumer Reports, on average, after only about three years, a new car will be worth just 54 percent of its original value.
Besides from just the initial face value of the car, you’ll also pay less sales tax on a used car. As well as have cheaper insurance, and in many states it is cost less to register a used car than it is a new car.
In 2015 the average used vehicle was 4.3 years old and had 51,554 miles on the odometer. According to IHS Automotive, the average car driving on American roads had reached a record high of 11.5 years of age. And the auto industry think tank also predicts that by 2020, the number of 12-year-old vehicles still in operation will rise by 15 percent. So you can save thousands and still expect a long service life from a used car
Once upon a time, buying a used car could be risky business. The second-hand automobile didn’t come with a warranty, let alone a manufacturer’s seal of approval, and there was no telling what kind of wear and tear a vehicle had seen. Thankfully times have changed; many dealerships now offer CPO programs. CPO stands for Certified Pre Owned vehicle, these cars are typically only a few years old, with low mileage, and are in like new condition. To be a CPO vehicle it has to pass a detailed inspection and typically comes with some level of a warranty, taking the much of the risk out of buying a used car.
Vehicle History Reports
Vehicle history reports tie in with a lot of what I mentioned above. In the past there was no way to know the history of a used vehicle besides to take the dealer or previous owner at their word, however, today the facts don’t lie. Using a vehicles VIN number, companies like Carfax and AutoCheck, can obtain a substantial amout of information on the vehicle, including the number of previous owners and previous registration status (lease, personal, fleet, taxi, etc.). As well as look up any accidents, floods, repairs, lemon law history, and provide mileage validation.
Final Thoughts for Consideration
Even with all the precautions out there, there’s no way around it, buying a used car is riskier than buying a new car. But the good news is that today’s vehicles are better than ever, vehicle history reports can reveal important details about a car’s past, and automaker CPO programs offer a nominal guarantee that you’re getting the best bang for your buck!