If most people were completely honest, they would tell you that buying a used vehicle is smarter than buying a new one, at least financially.
And, generally speaking, that’s true. Unless the cost between a used vehicle and a new vehicle are just a few thousand dollars apart, you could save some money if you bought a used one, even if some repairs have to be made.
But, overall price isn’t the only factor to consider when deciding whether to buy a new or used car. That is what most people look at first, but it goes deeper than that.
We are going to look at some of the reasons it’s actually better to buy a used vehicle over a new one.
Used vehicles are usually cheaper:
Price and cost are two different things.
Price is what it takes to actually purchase anything you buy.
Cost takes everything into consideration, including the initial price, maintenance, and running costs.
In other words, a $10,000 used corvette is going to probably cost more than a new $15,000 Hyundai Accent, especially the longer you own the vehicle.
A Corvette, at that price will probably need some repairs, and after that, will most likely make you pay more at the gas pump.
The new Hyundai Accent will probably be more problem free, apart from regular oil changes and such, and will get about three times the gas mileage of the Corvette.
Now, we’re comparing apples and oranges here, but let’s flip the script. What if you bought a $15,000 Corvette and a $10,000 Hyundai Accent?
The Accent will probably still be more reliable than the Corvette, repair costs will be higher with the Corvette, and insurance costs will also be higher for the Corvette.
As will more likely be the case, the Hyundai Accent will still cost less than the Corvette.
The Flip Side: Cost isn’t always monetary and includes your own valuable time. The potential weekly or monthly visits to a shop for repairs may not justify a few thousand dollars less for a used vehicle.
They usually won’t depreciate as much:
One part of cost that people rarely think about is depreciation.
Most normal cars depreciate. There are exceptions, but you can read about them HERE.
New vehicles lose about 20%-50% of their value when you buy one and drive it off the lot. Used vehicles don’t.
More often than not they will continue to depreciate as long as you own your vehicle of choice, just not as quickly.
The Flip Side: If you are going to have the vehicle for a long time, depreciation really doesn’t matter as much.
They are already broken in:
If you are at all concerned with the maintenance of your vehicle, you are doubtless aware of a vehicle’s “break-in period”.
A break-in period for a vehicle is the time within the first several thousand miles of driving where all the parts and moving pieces settle – for lack of a better term.
It’s similar to when a new house is built, and you hear a lot of creaking and cracking as the house “settles” on its foundation.
Unless you buy a used vehicle with less than about 5000 miles, you won’t need to worry about the break-in process.
Each vehicle and manufacturer has their own process for breaking in a vehicle. Most involve varied city and highway driving, not exceeding a certain rpm, and a few other things pertaining to how to drive the vehicle. This prevents component failure, leaks, and premature wear on parts.
That being said, buying a used vehicle skips that process and just allows you to drive it without having to worry about all of that.
The Flip Side: Most people don’t pay as close attention to a vehicle’s break-in period as they should. Additionally, some new vehicles are actually pre-broken-in. Both effectively eliminate this benefit altogether.
It doesn’t matter as much what will happen to a used vehicle:
Not very many people are going to get a used car with rust, scratches, and dents all over it. These things just happen over time with use, but there’s also usually a limit to how beat up a car can be before people won’t consider buying it.
At the same time, many understand that a ding or scratch here and there doesn’t make a vehicle bad, but rather, just a little less pristine.
It is therefore easier to dismiss a ding on the door, a scratch on the hood, or a dirty vehicle a little easier on a used vehicle than a new one.
Of course, it is possible to get a used vehicle that has no blemishes, but it is harder to find. Life happens, dirt happens, and other people happen.
The Flip Side: Even a used vehicle can be quite expensive to buy. A scratch or two can still be a pain when a stone gets kicked up and chips the paint or someone backs into your rear bumper. It’s not easy to keep a car clean and free from outside influences, but it’s always nice to have a nice vehicle, even if it isn’t the most expensive one.
The general history of the model in question is at your disposal:
Buying a used car isn’t as much of a crap shoot as it used to be.
You have always been able to have a mechanic check out a prospective used vehicle before you actually purchase it. Today though, things like Carfax and Autocheck give us almost everything we need to make an informed purchase ourselves.
At least, both give us a pretty good idea what the vehicle in question has been through.
It isn’t as good as knowing each exact detail, but it’s a lot better than not knowing anything at all.
The Flip Side: Nothing will beat knowing exactly where your vehicle has been and what’s been done to it because you have owned it for its entire life.
Taxes and insurance will be less because the vehicle’s value will be less:
Taxes and insurance are both expensive.
Since used vehicles can be worth significantly less than new vehicles though, you most likely won’t pay as much in taxes or insurance costs.
Most often, the only real advantage new vehicles have over used vehicles is insurance breaks due to newer safety technology.
The only other time a used vehicle may cost more in taxes insurance is when you make significant upgrade in the type of vehicle you have.
Want to trade in your 2017 Honda Accord for a 2012 BMW M3? You’re probably going to pay more for the BMW than the Honda.
The Flip Side: Overall value doesn’t necessarily directly relate to a vehicle’s tax and insurance costs. Some of this depends on the location, safety features, vehicle type, and owner of the vehicle.
Just because a used vehicle has been owned – and hopefully loved – by someone else doesn’t automatically make it a bad purchase.
Sure, there may be hidden problems here and there on a few used vehicles, but there are just as many great deals to be had on fantastic used vehicles all over the country.
Buying used is generally a better financial choice, therefore, an easier one to live with overall. It just takes some common sense, a little searching, and possibly some shrewd negotiating abilities to find the perfect used vehicle for you.
