Are you in the market for a different car? The market offers consumers the choice between new or used cars, but which one offers more value? If you take some time to read and learn about the differences, you will discover how much value the used car market has to offer.
Shopping for a new-to-you used car is fun, but it can also present a unique set of challenges. Perhaps you want to upgrade from your current vehicle, but you do not know where to begin. Purchasing a used car is never a hassle for the well-informed consumer.
The Top 7 Ways You Can Win By Purchasing A Used Car Are:
To a well-informed shopper, making the decision to purchase a used car saves them a lot of money. Although there are several factors involved in the total cost of ownership equation, purchasing a used car in the right condition at a fair price is always less expensive than purchasing a similar vehicle brand new.
Buying a used car is an exciting time because it offers drivers an inexpensive way to get behind the wheel of something newer than their current vehicle. Although there are a lot of things to look for when shopping for a used car, taking the time and making the effort to gather the right information on a vehicle’s condition before purchasing it can save buyers a lot of money.
On average, the used car market offers pricing that is about 50% lower than the new car market. If you are paying cash, this is a huge savings opportunity. If you are like most people, some financing may be necessary. You still have the opportunity to save a lot of money by shopping for the best financing rates available.
Dealerships often have agreements with some lenders to offer their financing options to consumers shopping at the dealer. Take a moment to call your own personal bank, or a credit union, to shop for the best financing rates and get the most value out of your used car purchase.
Being a well-informed shopper is one of the best ways you can win with a used car. The more you know about your options, the exact condition of the car, and the overall market in general; you will be in a better position to win during the negotiation process.
Majority Of Depreciation In The Past
For most vehicles, the biggest cost of ownership when buying a brand new car is depreciation. Most brand new cars experience up to a 50% depreciation of its value within the first three years of ownership. In fact, many brand new cars lose almost 10% of their value the day you drive it off the lot. A used car that is at least three years old has a majority of its overall depreciation in the past.
Many used cars that are three years old will only depreciate at a rate up to 25% of its value during their next three years of life. However, caring for the car with good preventative maintenance habits will go a long way toward protecting your car’s value.
Depreciation on newer cars gets ugly when financing gets involved. Many dealerships offer special insurance to cover the depreciation gap on the loan should something unexpected happen. This special gap coverage is always an additional cost to you, the buyer.
Save yourself the hassle of calculating the depreciation to loan value by seeing what the used car market has to offer. You may be surprised by what you find. Buying a used car with a large chunk of its depreciation in the past is a good way to win while shopping for your next vehicle.
Better Car For Your Money
If you have a budget for your next used car purchase, take a moment to compare some of the used cars on sites such as Autotrader or CarGurus, with brand new cars available for the same price. You will usually see that you can get a nicer vehicle with more features from a three-year old used car than many brand new options available within the same price range.
You may only be able to afford a base entry-level trim with standard features in the new car market, but in the used car market you will likely find a lot of luxurious trim levels are within your budget range. A quick click over to your favorite used car site will reveal many available vehicles, that are at least three years old, for under $20,000.
For example, BMW makes a lot of cars that carry a luxurious reputation wherever they go. You may not think $20,000 or less could buy a 2017 BMW, but it can. There are thousands of 2017 or older BMW vehicles available nationwide for $20,000 or less. That is just one example, do this search for a lot of your favorite cars and see how a three year or older vehicle can offer you a lot more for your money.
Having the option of getting a better car for your money is another way you win with a used car. The possibilities are almost endless. Many car shopping sites allow you to filter the results to fit your budget and the kind of car you are looking for. The only way to discover what you are looking for is to begin browsing what is available.
More Variety Available To You
On average, the new car market offers more than 300 models every year, but usually less than 400. That may seem like a lot, but it is a limited selection when compared to the options available within the used car market. Many older cars are not even in production anymore, but some people still care about these classics and go to great lengths to take care of them. When it is time to sell them, they become available on the used car market.
From vintage nostalgia to recent models with advanced technology, the used car market offers something for everybody. A wise shopper considers every aspect of a used car’s condition when negotiating a fair price with the seller. Make sure you know everything there is to know about the condition of the actual vehicle before signing a purchase agreement.
You need more information than just the Kelley Blue Book Used Car Value to know if you are getting a good deal. With such a large variety of used cars available on the market, a CarFax Vehicle History Report only tells you a small part of the car’s story.
A third party car inspection service, such as CarDr.com’s comprehensive vehicle inspection service, can help you know what to expect from the car down the road. CarDr.com even has a package including a CarFax report for more information, convenience and value.
CarDr.com collects vehicle data from every make and model we inspect. We use that data during our On-Board-Diagnostics (OBD) scan to compare it with other examples from the same exact model previously collected from inspections nationwide. Comparing data across this massive database allows CarDr.com to see the exact condition a car is in while giving you, the shopper, the best possible point of reference. This technology allows you to discover how the used car you are looking at compares with the same model, in similar condition, across the country.
CarDr.com combines this advanced state-of-the-art, pre-purchase used car inspection artificial intelligence (AI) with the expertise of auto inspection experts to perform a full end-to-end vehicle inspection. CarDr.com’s report is available shortly after completing the inspection, so you will not be waiting long for the results.
The low car inspection cost is nothing compared to the high auto repair bills of buying somebody else’s headache. Getting a full picture of the car’s overall health will save you a lot of money while enjoying the full range of vehicles available on the used market. Browsing such a wide variety of available options is another way you win from shopping the used market.
Lower Insurance Premiums
The value of your car carries the most weight when an insurance company calculates your rates. This actually makes a lot of sense because insurance companies know they will have to pay more for extremely valuable cars in the event of an accident or theft. Because vehicles depreciate so much the first three years after they are brand new, a three-year old used car will always cost less to insure than that same make and model available new.
Considering the average used car price is so much lower than new car market pricing, purchasing a used car often comes with lower insurance premiums. Paying less to insure a vehicle is another way you win when purchasing a used car.
Fees are a part of life when it comes to car ownership, but purchasing a used car instead of a new one can help you avoid some expensive fees. Buying a new car often comes with several fees, some of them even seem like hidden fees at times. Dealers always try to charge a destination fee, usually $500 or more, for new cars already on their lot.
Other fees commonly associated with new car purchases include dealer preparation or hidden advertising fees. Why not pass the cost of marketing off to you, the consumer, if car dealerships can get away with it by the time you sign the final documents?
Buying a used car rarely comes with hidden fees such as these. Be careful to review the financial breakdown of any purchase agreement or loan documentation when buying a used car from a dealership, it is better to play it safe before it is too late.
Annual registration fees can be lower for some used cars. Of course, fees vary by state, but older cars usually cost less to register. If you live in a state which charges the same registration fees across all vehicles, this section will not apply to you. Many states, however, charge a different rate based upon factors such as the vehicle’s age or weight. Some states charge more for powerful engines while other states use a flat-rate.
Check your local vehicle registration laws for more information. There are also sales taxes for new or used vehicle purchases in some states. If you live in a state which charges sales tax on vehicles, deciding to buy a used vehicle for less money will sometimes translate to a lower sales tax on the purchase.
Overall, most shoppers in a lot of states pay less fees when purchasing a used car instead of a new model. Getting behind the wheel of a new-to-you vehicle while paying less money for fees is another way you win when by purchasing a used car.
There Is More Data Available On Older Cars
When a new car hits the market, there is almost no data available to consumers about potential issues or its long-term cost of ownership. Used cars come with years of data ranging from what to expect from a specific model to preventative maintenance advice for that exact vehicle.
This collection of data extends to helping you find the right car during the shopping process. CarDr.com collects data on every car it inspects. This data provides real-time insight on how the used car you are looking at compares with the same exact vehicle across the nation. CarDr.com’s state-of-the-art car inspection AI combines with knowledgeable inspectors to give you a clear portrait of the car’s actual health and condition.
Having all this data available at your fingertips is another way you can win with a used car. From consumer reviews to vital vehicle diagnostic data, the power is in your hands as the consumer when purchasing a used car.
How To Win With Your Next Used Car Purchase
Many drivers switch cars every six to ten years. That means your next vehicle may need to last you for ten years or more. A vehicle’s true value takes more than a NADA used car value report to determine. You need to know everything you can about a used car before signing the purchase agreement.
A used car pre-purchase inspection by professionals, who combine their expertise with advanced car inspection tools, can reveal everything you need to know and more. Be careful though, not all car check services are equal. Right now, CarDr.com is the only auto inspection company offering state-of-the-art nationwide vehicle inspection AI to monitor a car’s heartbeat while comparing it with data from millions of other motor vehicle inspections.
Best of all, CarDr.com will go anywhere you need a used car inspection. Some shoppers browse Cragslist ads in other states to find the perfect vehicle to suit their needs. With so many great car transportation services available, shopping for a used car can be as simple as having it show up in your driveway.
Whether you are shopping locally or out-of-state, knowing the exact condition of your next used car purchase before buying it is crucial to getting the most bang for your buck. Trust the best pre-purchase car inspection company when buying your next used car. CarDr.com will help you inspect the unexpected, so you can know everything about the car before driving it home.