Is Buying a Used Car Worth it?

You’ve probably heard the old argument a million times: Is buying a used car worth it? Is it smarter to pay a little less for a car that isn’t in brand-new condition? Or is it better to get something brand-new? Well, it depends on the situation but you should know that there are several benefits associated with buying a used car and these benefits might outweigh the benefits associated with buying a new car.

Regarding Value Depreciation

You’ve probably heard it said that a brand-new car loses a chunk of its value the moment you drive it off the lot. This saying is describing the unfortunate reality of value depreciation. You see, when you purchase a brand-new car and drive it off the lot, if you were to turn around and sell it back to the dealership, the amount that they’d be willing to pay for it will be lower than the amount you bought it for. Your brand-new car’s value will immediately drop because the dealership won’t be willing to pay full price for it again. This is because dealerships need to make money and if they were to purchase your car, they’d need to be able to mark up the price again.

Because of value depreciation, buying a new car is going to cost you some money. Some studies have shown that in the first year of ownership, you’ll have lost nineteen percent of your vehicle’s value. This means that if you purchase a car that is one year old, you’ll likely save around nineteen percent of the money you’d have to spend if you bought your car brand-new.

Now, some people don’t mind taking the value depreciation hit. They feel as though it’s worth losing the money because they get all of the benefits associated with owning a brand-new car. The warranty, for instance, is a big bonus for a lot of people. Getting extra things such as free service and oil changes is also a big benefit for a lot of people. But you need to decide whether the benefits associated with owning a brand-new car are better than the benefits of owning a used car.

Saving Money Is Really Important

It’s likely that you’ll need to take out an auto loan to buy your car. Would you prefer to pay nineteen percent more for a car or find a car that is one year old and save that much money? Suppose that you’re interested in buying a BMW. While BMWs aren’t obscenely overpriced, they aren’t cheap. With luxury cars, value depreciation is even more severe since the markup is so high. If you can find a used BMW for sale in Huddersfield, you’ll save a lot of money.

When you purchase a used car through a used car dealership, you’ll still get a lot of the benefits that come with purchasing a brand-new car such as an extended warranty, free roadside service for a few months, and other benefits. When getting your next car, you should definitely consider purchasing a used car.