A used car can be a great way to get a lot of bang for your buck on your next car. New cars are great, but used cars offer big financial advantages thanks to depreciation. The average car loses 35 percent of its value in the first three years of its life which is great news for drivers shopping for a good deal on the used market.
With recent advancements in automotive technology and engineering, the current used market is better than ever. There's almost as much variety on the used market as there is on the new market with cars, trucks, vans, SUVs, and even hybrids and EVs that have gone through depreciation making them stronger values.
Pros and Cons:
Pros: The biggest pro of buying a used car is value. Like we mentioned earlier, a used car can lose a lot of its value in not a lot of time. If you really keep an eye out for which cars depreciate the fastest, it's possible to get a used car that's as little as three years old for less than half the price that is was when it was new.
With used cars being more affordable than their new counterparts, it brings a wider variety of options to drivers with a lower car budget. For example, a luxury car or a nice sports car can be accessible to a driver who might not normally have a budget for one until after it goes through a few years of depreciation.
Cons: There are always some gambles that come with buying a used car. If you buy a used car from a dealer, it's likely gone through some kind of inspection by professionals to ensure it doesn't have any major problems. If you're buying from a private party, however, you're taking a bigger risk and there might be some hidden problems that you could miss no matter how hard you look it over. Consider getting a pre-purchase inspection done by a mechanic before agreeing to buy a used car from a private seller.
One big reason people choose to buy new over used is because of the warranty you get with a new car. Unless you can get a used car warranty from the dealer you're buying the car from or from a third party, non-certified used cars generally don't come with a warranty. That means a used car might have a higher cost of ownership over a new car when you factor in maintenance costs. If you're shopping for a used car and you're not planning on it having a warranty, it's a good idea to do some research on its reliability and cost of ownership.