Save Money Buying Used

One of the biggest advantages of purchasing a used vehicle is the significant cost savings compared to buying new. New cars can lose 20-30% of their value in the first year alone due to fast initial depreciation. This makes gently used 1-3 year old models much more affordable. For example, a $35,000 new car may retail for $25,000 or less after a couple years, while still being fairly modern with decent mileage.

Beyond the first couple years, depreciation slows but used cars continue holding value better than new. Ultimately you can get a lot more car for your money buying used since previous owners have absorbed most of the big depreciation hit.

To get peace of mind, consider certified pre-owned (CPO) used vehicles. CPO cars undergo rigorous inspections and include warranties for added consumer protection. While costing a bit more than non-certified used, CPO models deliver confidence at an affordable price compared to new.

Bottom line - buying used saves thousands over new while still getting a great car. The money saved can pay for accessories, insurance, or be put toward other financial goals.

More Car for Your Dollar

When buying used, you can often get a lot more car for your money compared to buying new. For the same budget, you could get a higher-end used car with premium features and performance that you may not be able to afford brand new. 

For example, a 2-year old luxury sedan with low miles could potentially cost the same as a brand new economy sedan. The used luxury sedan likely has a more powerful engine, smoother ride, leather seats, navigation system, and other premium amenities that the new economy sedan lacks. With used, you're essentially getting a big upgrade in car class and features without having to pay the high sticker price of buying that same car new.

Even if you're comparing similar classes of vehicles, the used car is likely to have better equipment, technology, and specifications than the cheaper new version. That's because auto manufacturers often reserve the latest features and performance upgrades for their most expensive trim lines. So by going used, you can get superior performance, technology, and features for the same price point as a lower-end new model lacking those upgrades.

Overall, buying used lets you maximize your dollar and get the most car for your budget. You'll enjoy the perks of driving a nicer, higher-quality vehicle without having to pay the steep premium of purchasing it brand new.

Established Track Record

Choosing a used car allows you to benefit from its established track record. With a used car, you can research its maintenance history and consumer reviews to gain insights into potential issues or weak spots. For instance, certain models may be prone to transmission problems, so you can be on the lookout for early signs or ensure the previous owner already replaced the transmission. Some used cars may have already had their tires or battery replaced recently - saving you money in the short term. 

In general, buying used means someone else has put the initial miles on the car and broken it in. Any major mechanical flaws or defects may have already been addressed by the previous owner, especially if they maintained service records. Some used cars may even have extended warranty coverage that carries over to you as the new owner. With a used car purchase, you avoid that initial depreciation and risk that comes with untested new models. So you can feel more confident about the car's track record before jumping in.

Wider Selection

Buying a used car opens up many more options compared to only looking at new cars. With used vehicles, you are not limited to just the current model year - you can find discontinued models or rare vehicles that are no longer in production. This gives you a lot more selection to find the exact make, model, year, color, options etc. that you are looking for. Whether you want something classic like a 1960s muscle car, or a relatively recent model that is now out of production, you are much more likely to find it shopping the used market. The used car inventory turns over much faster than new cars, so you can watch for the right car to become available instead of settling for whatever limited stock is on the new car lot. With patience and persistence, you can find your "dream car" used rather than being restricted to only the latest models.

Lower Registration/Tax

Buying a used car can save you a significant amount on registration fees and sales tax compared to buying a brand new car. This is because registration fees and sales tax are based on the depreciated value of a used vehicle, rather than the new retail price. 

For example, if a new car has an MSRP of $30,000, you may pay around $2,000 in sales tax, depending on your state and tax rate. However, if you buy a 3-year-old version of the same car for $18,000, your sales tax would only be around $1,200 - a savings of $800.

The same goes for registration fees which are also based on the car's value. In most states, registration fees for a used car can be 20-50% less than a new car. For a $30,000 new car, you may pay $400 in registration fees, while a used version of the same car would only be $200 to register.

The savings on sales tax and registration alone make buying used very appealing. For example, you could take that $1,000 savings upfront on a used car and put it toward maintenance, repairs or accessories. So buying used gives you more car for the dollar from day one.

Lower Insurance

Purchasing a used car can save you money on insurance premiums compared to buying new. Insurance rates are partially based on the value of the car, so coverage for a used car will be lower than for a new one. 

Additionally, some states only require liability coverage for used cars, whereas full coverage is typically required for new cars with loans. Liability only insurance can reduce your overall premiums significantly. With a used car, you have the flexibility to choose liability only or maintain full coverage based on your needs and budget.

Before purchasing a used car, get quotes from multiple insurers to compare rates. And remember, buying used allows you to get a newer model car for less money, with lower associated insurance costs. That's a win-win when it comes to saving on your auto policy.

Great Secondary Cars  

An older used car can make an ideal extra vehicle for families or a starter car for new drivers. Since the car already has some wear and tear, drivers can gain experience behind the wheel without worrying about adding the first dent or scratch. Newer drivers may feel more comfortable learning on an older car versus an expensive new one.

Used cars also work well as an extra family or commuter vehicle. Rather than putting lots of mileage on the primary family car, a used second car can take on those everyday errands and commuting miles. The lower insurance rates on an older used car also help make it affordable to insure as an extra vehicle. With an older used car, families can save their new vehicle for special occasions and limit its mileage while still having a reliable second car for everyday needs.