Financial and Other Benefits of an Arlington Used Car
- October 26, 2021
- Blog, Car Loans, FAQs, Sales
- Posted by email@example.com
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While most are aware of the cost-saving benefits that come with purchasing a used car compared to a new one, the benefits of going the used route do not stop there by a long shot. There are actually several other reasons why used cars are highly beneficial to their buyers, some in related financial areas and some in other realms you may not have even considered.
At Adonis Auto Group, we’re happy to offer a variety of used cars for sale in Arlington and other parts of Texas. Not only do we offer one of the widest selection of used cars on the market, we also help our clients understand the full range of benefits they get from going this route. What are some of these benefits, both well-known and lesser-known? Here’s a primer.
Initial Cost Savings
While it was mentioned above and is one of the most well-known benefits of the used car buying process, it’s still worth noting again: Buying a used car saves you money, and a lot of it. The average three-year-old vehicle loses about $4,000 in value per year, meaning that savings can be had even if you only keep your car for one or two years before trading it in or reselling it yourself.
This comes after considering the simple sticker price, which averages about 50% lower for used cars than new ones. Whether you’re paying cash or financing in any way, you leave more flexibility in your finances with a used car purchase.
Depreciation is in the Past
Many car buyers are aware of depreciation, or that famous line: “A new car loses 10% of its value the day you drive it off the lot.” This line is so popular because it’s true, and depreciation of new cars is much higher than it is for used cars.
Because a new car loses so much value in such a short time, people tend to think of this as a long-term occurrence and one that’s inevitable when buying a new car. In truth, depreciation slows down when you buy a used vehicle. The fact that the majority of owners have already experienced their car’s depreciation means it happens at a more manageable pace compared to the first few years on the lot.
And even if depreciation is a bit of an issue, dealerships like ours offer special insurance to cover the gap between the trade-in cost and the new vehicle’s resale value.
Lower Insurance Premiums
Another area of financial savings you get with a used vehicle compared to a new one: Lower insurance premiums. Insurance companies base your rates on risk, which is lower in the case of used cars regardless of make, model, or age.
Part of the reason for this goes back to our previous section, in fact. Depreciation is a major factor in insurance company calculations, and because depreciation slows down with used cars, it means the risk of them causing more damage or being stolen is lower.
Wider Vehicle Selection
Did you realize that the entire new car market only offers anywhere from 300-400 new models each year, at most? This is a fraction of the overall selection of used car options that are available, meaning that if you’re looking for something very specific (a certain model year or make, perhaps), chances are excellent you’ll be able to find it in the used market.
Also worth considering is the fact that if you really want a customized vehicle, getting one second-hand can provide you with many more options. If you must have a vintage vehicle, for example, the second-hand market is the only place to go — you simply won’t be able to find vehicles like this on the new market, as they aren’t profitable to dealerships to stock.
More Data Available
When a brand new vehicle model hits the market for the first time, there’s virtually no data available on it besides what the manufacturer releases — and this information, for obvious reasons, tends to be biased. This means you have less information to work with when shopping for a new car, and it also means you’re taking a chance by buying a new model that has not been properly vetted.
If you purchase a used vehicle, however, there’s tons of third-party data available on its performance and reliability history — which makes your decision easier and more informed. And if this used vehicle is a certified pre-owned model from the dealership, you have access to information on its warranty and other benefits. The more data available to customers, the better their experience will be and the more informed their choices will be.
Fees are a natural expectation when it comes to cars, but used cars help you avoid paying some fees that you would have to typically pay on a new car purchase. Namely, there’s no destination fee (because the dealership already got its profit from selling it), and there’s no secondary market dealer fee (most likely, the person who sold you the vehicle is still using it).
There are also no fees like dealer preparation costs, hidden ads or others that often crop up with new car purchases. Furthermore, many used cars come with much lower registration fees than their newer counterparts — this may depend on your state or even your local area. Heck, even your sales tax might be lower in many cases where you buy used instead of new.
For more on the numerous benefits of going with a used car, or to learn about any of our used vehicles for sale in Arlington or nearby areas, speak to the staff at Adonis Auto Group today.