When you are deciding what kind of car to buy next and how much to spend, you might initially think about a brand-new vehicle. However, this isn’t always the best idea, and it might be that buying used is a much better choice. Here are the reasons why.
When you buy a brand-new car, as soon as you start using it, you will have lost money. Cars depreciate (in other words, they lose value) very quickly, so if you’re spending thousands of dollars, you won’t be able to get that money back when you come to sell it.
If you buy a used car, the depreciation is much less (although it still exists, so it’s unlikely you’ll make a profit if you were to sell that car) as the first owner of the car was the one who would have lost the most money. So, with a used car, when you do come to trade it for a new one, you’ll have a higher percentage of the value left than with a brand new one.
When you are buying a used car, you can get a better deal than if you are buying a brand new one. To start with, the price is going to be lower when you compare the two options. Plus, the used car market is vast, so you can take more time to shop around and find a car that you love and can easily afford.
If you have a car to part exchange, you might think this will help you get a better deal, but in reality, it could be costing you money. A dealer isn’t going to want to pay much for your car as they will want to sell it on for a profit. It’s often better to sell your car first and use that money to go towards the new one. The more expensive car you have to begin with, the more money you’ll get, and if you then buy a much less expensive car, you might even have some cash left over. If you sell Ferrari, for example, you could easily make some money back.
Although it may seem as though there are many different new cars to look at, there is really only a limited number. If you’re looking for something specific with certain elements to it, you might need to compromise and not get everything you want simply because that piece of equipment is not being included.
If you buy a used car, you will have so much more choice, especially if you don’t mind what kind of car you are looking for. If you have a completely open mind and just a budget to work on, you can find exactly the car you are looking for, including all the extras. Even if you do have an idea of what you want, you can still find more choice than if you are limiting yourself to a new car.