McKinsey’s auto retail micro-market model estimates that Americans buy 39.4 million used cars each year. The used car market has further expanded thanks to the digital revolution, which has significantly improved customer experience.
If you’re planning to buy a car, buying a used car is something you should definitely consider. We are some reasons why buying a used car is becoming more and more popular. Take a look.
Taking into account the impact of COVID-19 on the global economy, the auto industry has taken a hit as well. With the loss of employment and pay cuts, people are hesitant to spend on something like a new car.
If you’re working with a limited budget, then there is no better option than buying a used car. The used car industry makes it possible for people to become private vehicle owners without breaking the bank.
2. Lower Depreciation
A brand new car is estimated to depreciate roughly 20 percent in its first year of ownership. Some cars do manage to hold their value, but most cars are subjected to nearly 50 percent depreciation in their first three years. With a used car, the bulk of this depreciation has already occurred and borne by the previous owner. Buying a used car is an excellent option if you want to avoid heavy depreciation,
3. Better Value for Money
If you have your eyes on a particular model, you don’t have to settle for anything less with a used car. Buying a used car allows you to buy a better model despite having a tight budget. Instead of buying a basic car, get a fancy used car with more features at a lower price. It’s a win-win.
4. Wider Selection
Were you in love with a car, but the manufacturer has discounted the model? The used car market can still make your dream of owning that particular car come true. Used car markets offer a wide selection of old and new models. Whether you are looking for a car model released a couple of years ago or a vintage car from the 80s, you can find one at a used-car dealership.
5. Lower Insurance Premium
As mentioned earlier, most of the depreciation has occurred for a used car. This allows you to enjoy lower insurance premiums. Insuring a used car is often lower than insuring a new car. Buying a used car is not only an affordable initial cost but also lowers future costs.
Understandably, you may be hesitant to buy a used car. But there is nothing to worry about if you purchase a used car from a reputed dealership. Used cars are thoroughly inspected, refurbished, and certified. If you’re short of funds, usually dealerships also offer financing options for used cars.
7. Room for Car Mods
By buying a used car, you will save money that can be used for car modifications. You can make all the specifications you want, which would have been far more expensive for a brand new car. For discounted auto parts and accessories, head over to Partsgeek online warehouse.
8. Sustainable Choice
Every purchasing decision you make has a direct or indirect impact on the environment. Manufacturing and shipping new cars consume a lot of energy and resources. By buying a used car, you can lower your carbon footprint. It will help you put less carbon dioxide in the atmosphere, even less than a hybrid.
If money is not an issue, then you probably would be inclined towards buying a brand new car. But considering the aforementioned advantages, there is no harm in checking out the used car market and saving several thousands of dollars!