A Closer Look At The Benefits Of Choosing To Buy A Used Car Rather Than A Brand New One

One of the biggest decisions that individuals will need to make when buying a vehicle is whether to purchase a used car or a brand new car. Many people often assume that the only reason to choose a used car over a brand new one is the lower price tag, however choosing to purchase a used vehicle offers several other benefits. Continue reading to learn more about some of the benefits that you will enjoy if you choose to purchase a used car.

Benefit #1: Avoid Dramatic Depreciation In The First Year

A brand new vehicle can lose a significant amount of value the moment that you drive that vehicle off the lot. This fast rate of depreciation will continue over the first year that you own your car. Consequently, until you pay off a significant amount of your auto loan, you could find that you owe more for your vehicle than it would be worth if you chose to sell it. Since used cars have already gone through this period of dramatic depreciation, you will be able to avoid this problem.  

Benefit #2: Enjoy Lower Insurance Rates

People often believe that newer cars will qualify for lower insurance rates because they are perceived to be safer and more reliable than used cars. However, the fact is that you will often pay higher insurance premiums each month if you choose to purchase a brand new car. The reason for this is that a brand new car will have a higher replacement cost. In the event that your vehicle is damaged or totaled as the result of an accident, the insurance company could find themselves paying out a much larger settlement payment. To help offset this risk the insurance company will typically charge more when insuring a brand new vehicle. Consequently, not only can choosing to buy a used car save you money at the time of purchase, but it can also save you money on your ownership costs by allowing you to enjoy lower insurance rates. 

Benefit #3: Choose From A Wider Selection

Over time vehicle manufacturers will discontinue certain models or change the body style of the models they produce. When buying a brand new car you will only have the current models and body styles to choose from. If you choose to purchase a used car instead, you will be able to choose from a much wider selection in order to ensure you find a car that perfectly suits you.