When buying your first car, it’s important not to get sucked into buying the shiniest, newest car on the lot.
Since new cars decrease in value much more quickly than used cars, cost more in insurance and typically have a higher average cost of yearly ownership, they represent a greater loss on your investment. On the other hand, used cars allow first-time car buyers to purchase a reliable car at a far more reasonable price. Here are some of the main reasons first-time buyers should consider a used car for their first ride.
First, of course, is price. If you’re interested in some of the exciting bells and whistles that higher-tech cars have to offer, a slightly older used car may come with some of these features – and at a fraction of the price of a new car that will often offer fewer options.
Another cost factor is depreciation. While brand new cars often come saddled with a depreciation of over 30% depending on market conditions and other factors, a used car will allow you to avoid this cost altogether.
On the other hand, many new car dealers charge through the nose for these extra features that add little to no resale value and that you simply don’t want or need. By buying used, you can be sure to avoid these extra fees and surcharges. Even if you do want these features, you can simply have them installed by an aftermarket professional for a much lower cost.
The price of the car always comes along with the fees of titling, registering, and insurance. These price tags might mean that a new car is out of the question anyway. Even if you have the funds to cover the cost of a brand new car, the fees to make it legal for driving and to maintain it might prove to be too much to handle.
Tax is also a major cost burden for new car buyers, and can amount to thousands of dollars or more. You should never underestimate the high taxes you’ll avoid by buying a used car.
A “used car” doesn’t have to mean a beat-up vehicle from the mid-90s. You could find great savings with a car that has been slightly used – one that was made just a few years ago and with only a few thousand miles on it.
Are you a first-time car buyer? Are you finding all the choices to be too overwhelming for words?
One of the first (and easiest) places you should look is the online DriveTime inventory, where you can search by year, body type, model, and make. You can also just browse through the images and see what strikes your fancy!