When it comes to upgrading your ride, your thoughts may go to purchasing a brand-new vehicle at your local dealership. In reality, that’s not your only option. There is an abundance of preowned vehicles that are available for you to purchase that can provide you with a newer ride without the large price tag that comes along with brand-new vehicles.

You Don’t Suffer Any Initial Depreciation

One of the biggest pitfalls of purchasing a new vehicle from a dealer is that it loses value as soon as you drive it off the lot. It can be overly shocking to find out that the value of the new vehicle you just bought depreciated a whopping 20% as you left the dealership lot.

That’s a massive amount of value to lose from your new vehicle, especially considering the fact that your auto loan isn’t 20% cheaper. Also, new cars will depreciate an additional 10% over their first year of ownership. That’s a total of 30% reduction in your new car’s value just in its first year alone.

When you opt to purchase a preowned vehicle, you can avoid that initial depreciation drop. As long as you’re paying fair market value or less for the preowned vehicle, you won’t have to worry about being upside down on your loan. This fact can make purchasing a preowned vehicle much more intriguing than opting to buy a brand-new one off the dealership lot.

Car Insurance Can Be Much Cheaper

While what you pay for a vehicle is a major consideration when determining whether to buy preowned or new, it’s also important that you take into account your ongoing expenses. One of the highest expenses next to your car payment will be your insurance coverage. On average, car insurance is much cheaper for used vehicles than it is for new vehicles.

This is fairly easy to understand as parts tend to be more plentiful for vehicles that are a few years old as compared to vehicles that are fresh off the manufacturing line. Another factor that greatly impacts your cost of insurance is gap coverage. This type of coverage is typically required on all new vehicle purchases. The idea is that gap insurance covers the difference in price between a car’s depreciation and its remaining loan amount in the event that your car is stolen or totaled.

Silver Is in High Demand

When it comes to the preowned vehicle market, silver is the most in-demand color out there. Black follows with a close second. Then, demand goes for red, gray, blue, and white. This can be crucial to consider when purchasing a preowned vehicle.

If you intend on keeping your car for quite a long time, you may want to opt for a less in-demand color as it may be slightly cheaper to purchase. However, if you plan on reselling the car in a few years, you may want to splurge for a silver or black color. You’ll likely be able to resell the car faster and at a higher premium than less in-demand colors.

Preowned Manual Vehicles Are Few and Far Between

When you take a look at the vehicles available on the used car market, you’re very rarely going to come across a manual transmission vehicle. In fact, automatic transmission vehicles outweigh manual vehicles in the preowned marketplace by 10 to 1. This is an important fact to keep in mind if you’re planning on reselling your used vehicle in the future. It’s going to be much harder to find a buyer for a manual used car as not a large percentage of drivers understand how to drive a manual transmission vehicle.

Odometer Fraud Is a Real Thing

You may have seen the movies where drivers will drive their cars in reverse to reduce their odometer readings. While that’s not how the process is done in real life, it’s essential to realize that it can be done. This fraudulent activity can have unwitting drivers buying so-called low-mileage vehicles that end up having hundreds of thousands of miles on them.

It’s true that it can be difficult for the average consumer to identify whether or not a car’s odometer has been rolled back. One of the best forms of protection that you have when buying a used vehicle is to do so through a reputable source.

Get Features You Want at a Big Discount

When you’re surveying the preowned vehicle market, one of the best things you can do to reduce how much you spend is to look for first-generation vehicles that have been newly discontinued. Many of these first-generation models will have the electronics and other features that you desire. However, their purchase price is going to be much less since the manufacturer is now producing the next generation.

You May Be Able to Avoid State Sales Tax

Many states require that purchasers of new vehicles must pay state sales tax. This can tack on thousands of extra dollars to the purchase of a new vehicle. Fortunately, some states don’t require that you pay sales tax on the purchase of a used vehicle. If you live in one of these states, this can end up saving you a good chunk of change off the purchase of your preowned vehicle.

Lower Registration Fees

Many states will base the registration fee of a vehicle on its value and age. Therefore, brand-new vehicles will have a higher registration fee than used vehicles that are a few years old. This is just another great way that you can save yourself some money when choosing to purchase a preowned vehicle over a new one.

Airbags Are the Most Commonly Stolen Vehicle Part

Just a decade ago, the most commonly stolen vehicle part was the stereo system. Nowadays, airbags are hot on the market. If you purchase a preowned vehicle that has never had an accident reported on its history, then you may not even consider checking for an airbag.

Unfortunately, airbags can be removed from vehicles, and you may not even realize it without physically removing the trim and airbag housing. To help mitigate your risk of purchasing a preowned vehicle without airbags, you’ll want to purchase your used vehicle through a reputable used vehicle seller.

Most Warranties Transfer Over

When you opt to buy a preowned vehicle, you may think that you have to give up the warranty that comes along with purchasing a new vehicle. This typically isn’t the case. Federal law mandates that vehicle manufacturers’ warranties stick with the car, not the owner.

It doesn’t matter how many owners a used car has. As long as the vehicle is still within the manufacturer’s warranty period, the manufacturer must honor its warranty. It’s crucial to realize that different cars come with varying warranty lengths. It can be highly beneficial to understand the manufacturer’s warranty coverage on a potential vehicle that you’re thinking about purchasing so you know how much of the warranty will be remaining.

With this information in mind, you are well-equipped to embark on your quest for the preowned car of your choice.