The Best New Cars Make The Best Used Cars
Why Should You Buy a Used Car?
Why buy a used car? There are some obvious perks, like a lower price tag. But there are other reasons to buy a used car as well. Check out some of these benefits to buying and owning a used car:
New cars lose a good chunk of their value the moment they are driven off the lot. In a matter of seconds, the vehicle transforms from new to used. According to Cars.com, new vehicles lose an average of 30% of their value in the first 2 years of ownership. That’s some pretty serious depreciation.
One big reason for this depreciation is retail versus wholesale pricing. When a customer buys a new car, they are paying the retail price which includes any extra money the dealership tacked onto the MSRP. However, if someone tries to sell back that same vehicle a day later, a dealer will only pay the wholesale price for it. Often times the difference between the two prices is thousands of dollars.
So when new car owners want to trade in their vehicle, the amount they receive for their trade will most likely be drastically different than the amount they paid for it. Buying a used car avoids this issue because the value of the car at the point of sale remains relatively the same once the car is driven off the lot.
So it’s simple: used cars are less expensive and they avoid the frustrating and costly issue of deprecation.
Many car brands are tuned into the used car market and therefore try to attract these customers. One way they do this is by allowing their vehicle’s original new car warranty to be transferred to a second owner. This means that if a car is sold after only 2 years of ownership for example, the second owner can still enjoy the remaining years of the warranty on this now used car. Combined with the lower price tag that comes with used cars, the transferable warranty is quite enticing.
In addition, used car buyers often have the option to add to the original manufacturer’s warranty or to enroll in special pre-owned warranties. These ensure even more reliability and longevity for the used vehicle.
Just think: you’ve got a more valuable, less expensive car that is still under warranty? Buying used is starting to sound pretty good.
Decreased Additional Fees
Buying a new car is an investment not only for the person buying it, but also for the dealer who agreed to put it on the lot. As a result, they often charge extra fees for things like “shipping,” “destination,” and “preparation.” What do these costs mean for the car? Nothing really. The dealer needs a way to make some extra money on their investment and the man power it took to get the car there; these fees cover both bases.
With a used car, buyers don’t have to pay for these things. All that they have to worry about is tax, title, and registration.
In addition, things like insurance rates and loan terms become more affordable when dealing with a used car. Most insurance companies offer lower rates for used cars in comparison to new. And dealerships are more likely to offer shorter loan terms.
When you consider all of these benefits, used cars at Midlands Toyota pretty much sell themselves. Make sure you stop by to take a look at some of the great models we have!