You don't have to be a rocket scientist to understand the concept of vehicles on a used car lot costing less money than brand-new ones straight from the manufacturer. But while it's common sense that buying used can save you a bit of cash on the sticker price, what is sometimes overlooked is all of the other ways that used cars also provide additional value when compared to buying new. Here are three advantages used car buyers will have as soon as they drive off the lot.
No Significant Depreciation Off the Bat
The second you drive a new car off a lot, it will immediately lose a significant chunk of its total value simply because it is now no longer new. Speaking strictly from an investment standpoint, it simply makes more sense to buy a used car because used cars will not depreciate in value as quickly as a new one does at the start. When you buy used, you are getting a vehicle that has already depreciated from its original sticker price, but thankfully, a previous owner of the vehicle took the financial hit, not you.
More Features for Your Money
Because of this depreciation in value, you may be able to purchase a vehicle with more bells and whistles than you would otherwise. For example, if you have $20,000 to buy a car, you could either buy a $20,000 current-year model, or you could buy a model from one or two years ago that now costs less than $20,000. The money you are saving could instead be put towards additional features like a sunroof, a better sound system or technological features. Keep in mind that these extra built-in features may also help your vehicle maintain its value when it's time for you to sell it yourself.
Save Money on Insurance
When you buy used, you're not just saving money through a lower sticker price or less depreciation. You also will likely save money through your auto insurance provider. New vehicles tend to cost more money to insure than old ones. Even if it's only a little bit of money off your premium each month, that money can add up to be quite a bit over the course of the next three to five years.
Buying from a used car lot will obviously save you money off the sticker price when compared to buying new. But buying used has additional advantages to consider, such as less depreciation of the vehicle after purchase, an opportunity to pack the car with additional features on the same budget, and the possiblity to save extra money on your car insurance as well. Contact a local used car lot like North Lake Automotive today to get started.