It is finally time to buy a new vehicle, but after looking at the high starting prices for even the lowest spec models, most people tend to think twice about making such an investment. For most families, their vehicle is often the second most valuable asset after their home, but there is a not so negligible difference between the two that makes it a questionable choice to buy a new vehicle for a large amount of money. Yes, we are talking about the much-dreaded depreciation that affects virtually every car on the road.
Simply put, depreciation works in a way that a car gradually loses its value over time, regardless of whether you drive it or whether it sits for days inside your garage or driveway. Depreciation is at its peak during the first few months of buying your quality prestige cars, with the vehicle often losing half of its value within a year. So even if you buy a fully loaded luxury vehicle today, it won’t be worth more than a standard compact car in a few years’ time.
When you purchase second-hand vehicles, you will not have to bear the result of depreciation that badly. Since most used cars on the market are at least a year old, they will already have depreciated by quite a lot, which means that they won’t lose that much value after you purchase them. Another advantage of buying used vehicles that have depreciated is that you get quite a lot of value for your money: most of the time, you will be paying something close to or even less than half of the car’s value back when it was brand new.
There is a common misconception that used cars for sale are not worth buying because they are in bad condition. This isn’t true at all: in fact, most vehicles you find on used car lots are completely immaculate, as their owners haven’t really used them for more than a few months. Some of these vehicles could be even confused with brand new cars, for they are in such a good state. As long as you inspect a vehicle carefully before signing the deal, you can get a used vehicle that is in great condition, and you will be able to use it for a long period of time yourself.
Finally, another big advantage of going used is that you can avoid all those extra charges for registration, delivery and what not that new car dealers will try to charge you. All of these can add up to a very large sum, which you will have to pay on top of what you already need to pay for the car. With used vehicles, it’s much more simple: in fact, you will probably get to drive the vehicle sooner as well.