While I’m on spring break, enjoy this post from Jenna Smith!
Driving off a car lot in a brand new automobile is exhilarating. You might take pride in the fact that you are the first person to own the vehicle, and the new car smell alone might put a smile on your face. But while there is a certain satisfaction that comes with being the first owner of a car, buying new isn’t always the best deal.
Sure, new cars are more reliable and it will be years before you have to worry about major auto repairs. However, before you turn your nose at used cars, consider five benefits of taking the used route.
1. Pre-owned warranties. Some people skip used cars because they don’t want to risk buying a car without a warranty. This is an understandable concern, however, many pre-owned vehicles come with a three month or 3,000 mile warranty. Thus, if any major issues occur within the first few months of owning the car, the dealership is liable for repairs.
2. Generous selection. People are constantly buying and trading in cars. With this said, most dealerships have a huge selection of used cars. Check out quality dealerships boasting top models like Sheridan Nissan certified pre-owned Nissans and you’re certain to find a car that’s right for your family.
3. Factory-certified. Purchase a factory-certified preowned vehicle and you’ll enjoy peace of mind. These cars are inspected by a certified factory dealer and all needed repairs are made. Plus, you receive the same warranty coverage as a new car, minus the new car price. These vehicles cost slightly more than non-certified used cars, but still cheaper than buying a brand new automobile.
4. Get more for your dollar. Buy a brand new car today and you will pay top dollars. However, if you wait two or three years, you can get the same car for $8,000 or $9,000 less, yet enjoy the same great features. The person who owns the car before you takes the biggest hit with regards to depreciation. A new car depreciates 11% the moment you drive off the lot, and up to 25% within the first year. Used cars depreciate at a much slower rate – about 15% a year.
5.Comparable interest rates. New car rates are often the lowest, but this shouldn’t be your reason for skipping a pre-owned car. While you won’t get top rates with a used car, you can snag a comparable rate. For example, your bank may quote an interest rate of 4.50% for a new car, and a rate of 4.74% for a used car. Although the new car rate is lower, both rates are desirable and increase purchasing power. Contact at least two banks and compare rates. This ensures the lowest cost and the best finance package.
A pre-owned automobile can be your ticket to a new set of wheels. You can spend less and use the savings to give yourself a cushion. And with your car depreciating at a slower rate, you lower your risk of an upside down loan.
About the author: Jenna is a freelance writer who normally writes on the topics of personal finance, education, and career. Jenna has been writing on these topics for a number of years now and also writes about health and fitness on occassion. Jenna is a big fan of exercise, but not running! You can read more personal finance writing by Jenna at paidtwice.com