3 Financial Reasons to Consider Buying a Used Car

(MoneyHippo.com) – Driving by a dealership and seeing all the shiny, new cars might tempt you to stop and take a test drive. Before you do, consider buying a used car instead. With the depreciation rate on a new car, you lose thousands of dollars as soon as you drive off the lot. When you know that, purchasing a car right off the assembly line might not seem quite as attractive anymore. Here are a few more reasons to go for a pre-owned vehicle instead of a new one.

Save Money: This might seem obvious, but buying anything brand new will cost you more than something a few years old. Think about purchasing a cellphone or a gaming system. If you wait for the bloom to come off the rose slightly, the price will come down to better meet your budget.
Additional Savings: When buying a car, think beyond the sticker price. You should also consider the insurance premium you’ll pay to cover the vehicle. Used cars typically cost less to insure, saving you even more money over the vehicle’s life.

The Unknown: Buying a new car comes with several unknowns regarding performance, longevity, and reliability. By choosing a used car, you’ll have an opportunity to research the vehicle’s history and how the vehicle performs over time from people who’ve owned that make and model before.

As long as you thoroughly research the used car you’re considering, the advantages of purchasing a pre-owned car can far outweigh those of owning a new vehicle.