When you are finally willing to take the plunge and purchase a new vehicle, the word “new” can be relative. There are plenty of used cars on the market that can offer you the same advantages of a new car, but at a reduced cost. But what are some of the other benefits of going for a used car vs. a brand new model? Let’s take a look at the four key benefits of purchasing a used vehicle.
1. Lower Car Insurance Rates
In general, used cars may come with lower car insurance rates because they’ve been on the road for longer. It may cost less money to insure it, specifically when you’re buying collision or comprehensive coverage. If you want to save even more money, you can consider opting out of collision or comprehensive coverage – check with your state’s regulations on how much car insurance (if any) you need for your vehicle.
2. Lower Overall Price
In most cases, a new car will set you back more than a used vehicle, depending on the make and model you are purchasing. Because the value of a new car is also more versus a used vehicle, you will need to pay more in sales tax.
3. Less Cost Depreciation
The value of a new car drops as soon as the owner drives it off of the lot. This cost depreciation can translate into thousands of dollars lost within the first few years of car ownership for new-vehicle buyers. If you purchase a used car, you can avoid a major chunk of this depreciation. It may also translate into more cash that you can put toward extra features for your used vehicle, giving you the most bang for your buck.
4. No New Car Fees
One of the biggest benefits of not buying a new car is avoiding some of the fees that come with doing so. Processing, preparation, and advertising fees that you’ll find at a traditional dealership may all be a part of the process if you opt for a brand new vehicle. When you buy online with Carvana, you can avoid the fees typically associated with a trip to a dealership, saving you thousands of dollars when you choose to go the used car route.