Did you know that an American spends on average over $33,500 for a new vehicle? However, according to J.D. Power, the same year used vehicle only costs $20,000 on average. This means if you purchase a new vehicle, you will take 30 percent depreciation hit!
When we say used, we aren’t talking about ancient or worn out vehicles. We are talking about cars that are 2018 and 2017 models with less than 50,000 miles on the odometer. We understand there are reasons why you would want to buy a new car, but it makes much more sense to buy used!
1: You Spend Less Money
The obvious benefit of buying used is saving a significant amount of money. Why is this? New cars depreciate rapidly. Once you sign the paperwork on a brand new car and drive it off the lot, its value literally drops 30 percent, because it’s not qualified as a new car anymore. If you buy a used car, you’re letting someone else take that 30 percent hit, which saves you money!
2: Better Value
Believe it or not, brand new vehicles are not more reliable than used vehicles. In fact, vehicles of all makes and models have really increased in quality over the last thirty years. In the 1970’s, cars used to rust and fall apart within a decade. Now, cars can double that lifetime and still look great!
According to IHS Automotive, the average car is 11.5 years old. Modern vehicles are built to last, which means you can save thousands of dollars by purchasing a used car and still expect a long service life.
3: More Variety
When you choose to buy a used car, you have thousands of makes, models, and years to pick from. For instance, in our inventory we have over 24 makes and 515 models! This is especially helpful if you prefer the design of an older model or a feature that is no longer made.
Your car’s value is the primary item your insurance company considers when determining rates. The more valuable the car, the more money they’ll potentially have to shell out in case of a wreck. It’s understandable that a BMW purchased used will cost less to insure than one purchased new, and that all comes back to depreciation. You might not notice the difference between your 3 year-old BMW and a brand new one, but rest assured, your insurance company will offer you a lower rate.
In summary, used vehicles are better than ever! Why pay full price for a car and take that 30 percent depreciation hit when you could buy a gently used vehicle of the same make and model? Here at LeSueur Car Company, we have 2018 models and 2019 models in our inventory! Click here to browse our inventory today or come visit us! We hope this helped you consider buying a used car!