With depreciation rates and prices on the rise, it can be tough trying to find a good deal on a new car. If your budget is better suited for something a little less than new, a pre-owned vehicle might be what you need. They're less expensive and sometimes run just as nice as a brand-new model. Here are four benefits to going the pre-owned route.
A Used Vehicle Won't Depreciate as Fast
Despite a new car's flawless state, signing off on the paperwork and earning your title as the owner is already enough to devalue it some. Its resale value could plummet up to 40 percent or more in the first year alone and up to thousands of dollars in the following two to three years. While you won't avoid depreciation with a used vehicle, you won't get that big initial hit like the first owner does, nor will your car depreciate as fast.
You Can Avoid Paying Unnecessary Fees
Most new cars come with a state sales tax that could peak at thousands of dollars, and that's on top of the initial sale price of the car. The same goes for registration fees, which are usually high during the first three to five years of ownership. However,
buying a pre-owned vehicle could omit the sales tax and reduce how much you pay for registration fees. Plus, your insurance premium for a used car will likely be less than what you'd pay for a new car.
A Certified Pre-Owned Vehicle Runs Like a New Car
A certified pre-owned vehicle (CPO) is a used car that's been thoroughly inspected and reconditioned, is typically under six years old, and doesn't have a high odometer reading. Its
vehicle history report will also show no records of a major accident or major repairs. Because of these requirements for certification, you could end up with a CPO that has little to no cosmetic damage and runs just as smooth as a new car does.
Best of all, CPOs come with an extended manufacturer-backed warranty to help cover the cost of future maintenance. Depending on your plan, you might even get extras such as complimentary roadside assistance and special financing deals. Plus, CPOs tend to boast higher resale values than non-certified used vehicles. Sure, you'll have to pay a bit more to get one, but it's still a cheaper alternative to a newer model.
You Won't Have to Pay for Amenities You Don't Need
When you buy a new car, you're not just getting something shiny and modern. You're also getting a car that's packed with the latest features on the market, which could be anything from a high-tech infotainment system to an advanced head-up display. And while these amenities are convenient during road trips, they're not always necessary.
Not everyone will want to spend more on features like wireless charging, a Wi-Fi hotspot, or self-parking technology. And what about heated seats, hands-free lift gates, and power moonroofs? These types of perks could add thousands of dollars to a car, but you won't have to spend as much to get (or not get) them on a used vehicle.
Unsure about investing in a pre-owned vehicle? This guide can help make the car-buying process a lot easier!
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