Is it cheaper to buy a used car?

Second-hand is second nature for those bargain shoppers looking for a deal.  And, in most cases, lightly used and like new translates to substantial savings. The same is true by taking the cheaper route and buying a used car as opposed to new. When it comes to deciding between new and used, the savings involved with a car that has already seen some miles could be the deal maker. Used cars can be just as reliable as new models as long as the right choices are made. With that in mind, here are some benefits of taking the road to pre-owned. 

The price point is a good point This is probably the most obvious reason for buying used, but it still has to be stated. In most cases, well taken care of cars that are like new perform just as well as brand new models, only they’re less expensive. Sometimes they still have that new car smell too.  In fact, used cars that are around two years old and have 30,000 miles or less are 30% to 50% cheaper than new cars of the same make and model. And, certified used and pre-owned cars bought through a dealership not only come with pleasing price tags, they also come with a high mileage warranty. 

A little insurance Another reason buying used can rake in the savings is with insurance rates.  Insurance is like holding your breath: it’s not necessary until you’re in deep water. But, everyone has to have car insurance. And, on average, used car insurance rates are more affordable than new. Insurance is typically broken down into two types of coverage: collision and liability. Whether the car is new or used doesn’t much affect the liability coverage in terms of price. But, collision coverage and vehicle value go hand in hand. A used car technically has less value resulting in lower collision coverage and a cheaper insurance rate. 

Depreciation appreciation The second a new car drives off the lot, its value drops faster than a speeding, well, car. When buying new, there are premiums like shipping, freight, and dealership charges that add to a new vehicle’s overall price. But, used cars are virtually premium free. A used car has already depreciated and that’s reflected in the used car price (hopefully). Certified used cars may still have a small premium resulting in depreciation upon exiting the lot, but used cars from private parties can be bottom dollar. Just know the difference between a lemon and a roadworthy vehicle when buying privately. Purchasing a used car as opposed to new can and will result in massive savings. Just be sure to research ahead of time, choose wisely, and never base a decision on price alone. 

About the Author: Adam Groff is a freelance writer and road weary content creator.