While walking down the street, you saw a slick, new vehicle. Even the television advertisements bring you into a dealership to have a look at that shiny new vehicle. But is a new car good for you?
Sure, it can be a good choice for you depending on your credit score and if it has all the whistles and an attractive financing option, but there are other simple options as well? Such as used cars. There are various reasons to buy a used vehicle, which allows you to buy cars even with a poor credit score. Not to mention, buying a used car can save you money, offer the same satisfaction as a new car, and also provide quality transportation for many years:
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1. Used Car Saves You Money
Do you know that, on average, new car prices are almost 50% higher than used cars? So, it will be easier for you to pay off a used car faster and also save you financing fees. Moreover, on average, consumers switch cars six years after purchase, and if you pay $10,000 for a used vehicle rather than $20,000 for a new one, you could get a nicer car for your next vehicle or buy another used car for $10,000, receiving your own two for one special deal.
2. A Bulk of Depreciation Has Already Occurred
Oftentimes, customers complain about how readily a new car gets devalued. The cost of a new car or vehicle can drop 11% on the drive home, which means that the car that you bought for $20,000 is worth only $17,800 after it leaves the lot. The car continues to devalue as weeks, months, and years keep passing on. Hence, the bulk of the depreciation has already occurred, with used vehicles. Whereas, it is also possible that some used cars may even gain value. So, it is important to know how much a particular car will really cost and how quickly it will lose value, before buying it.
3. No Exaggerated Fees
While buying a new car, the deal might look great, but many new cars have hidden fees attached to them, like shipping charges, destination fees, and various other procedure fees. And some new car prices have hidden advertising fees that can be as much as $1,000. Whereas, a used car usually has no hidden fees attached to it. Moreover, while buying a used car, you can also find cars on finance with poor credit, whereas you need a good credit score to buy a new one.
4. Lower Customization Costs
When buying a used car, you don’t have to opt for costly dealership add-ons. As you may or may not install your own at a lower price than on a new car. Undoubtedly, it is one of the great ways to spend the money you saved when buying a used car instead of an old one.
5. Certified and Thoroughly Inspected
Certified pre-owned cars ensure used car buyers are going to get a quality, precisely inspected car that is also a bargain. Also, certified pre-owned cars have already been refurbished and certified by the manufacturer or by other certifying authorities, to make sure that the vehicle is high quality. Usually, these types of cars have an extended warranty, special financing, and many other benefits. And new cars only provide certainty that they are new.
Although some used cars have part of their original warranty, other used cars might have the option of making a new warranty. Hence, an extended manufacturer’s warranty on a used car can allow factory-trained technicians to restore your car with quality parts and great service.
7. Lower Insurance Premiums
If you met with an accident with your new car, then the insurance will pay only for what the car is worth at that particular time, leaving a gap between the buying price and what the vehicle is worth when you had an accident. So, in this situation, gap insurance will cover the difference between what was paid during the purchase of a new vehicle and what its depreciated cost is, but at the same time, it will increase your insurance premium. On the other hand, gap insurance isn’t required with a used car because here, the depreciation has already occurred.
8. Better for the Environment
Around a quarter of the carbon dioxide, a vehicle produces in its life-cycle develops during manufacturing and initial shipment. So, buying a used car certainly decreases the carbon dioxide output in the environment. Not to mention, used cars also influence the environment less than new and hybrid ones. Mainly, because hybrid vehicles use lead-acid, lithium-ion, or nickel-metal hybrid batteries that have a larger environmental consequence than a used car due to the toxic waste left behind by batteries and acid.
Therefore, if you are still stuck between new and used cars, then consider purchasing a used car from The Car Club, where you could be able to buy a car, even if you have poor credit.