Buying a car is never an easy process. Not only do you need to decide what kind of car, truck or minivan you want, but you need to find something that works with your budget. And with so many options out there, it can all quickly become overwhelming.
One of the decisions you’ll have to make during this process is whether you want to buy a new car, or something used. It’s a tough choice to make and one that could have a large impact on your life. To help you out, below is some information on why pre-owned cars are typically cheaper, and how exactly they can save you money. Hopefully with this information you can make a better decision for yourself and choose a car that’s right for you.
Why Pre-Owned Cars are Cheaper
As soon as you take a new car off the lot, it starts to lose some of its value. The more you drive it, the further the value goes down. This is because all cars have a shelf life, as there will eventually come a time when they essentially stop working. Over the course of its life, your cars value is slowly trending down towards zero.
There are two main things that impact the value of your car. The first is the number of miles on it. This number represents how long the car has been on the road, and the more miles you have, the less the car is worth. This is because more miles typically means more wear and tear, the other major factor. As a car ages, the parts inside it begin to wear down. A car that has been driven 10,000 miles will show more wear than a new car, and therefor has a lower value.
However, just because a car has more miles on it or has some wear and tear doesn’t necessarily mean it’s a bad car. Certified pre-owned cars are typically in great shape and provide a great value for car shoppers. Here’s how:
In the Initial Price
As we said, once a car leaves the lot, the value goes down. Since you’re driving a car that has some miles on it, the value will be lower. This means you don’t need to pay as much as you would for a brand new car. You may still end up getting a car that is practically like new, but because it’s been used, you get to see significant savings.
Save Money on Repairs
Another way you can save money by buying a certified pre-owned car is through repair costs. Certified pre-owned cars, unlike regular used cars, often come with some form of warranty. This means that if you experience some troubles within the warranty period, you can have the car fixed for free. On top of that, certified used cars go through an inspection process, to ensure they are in great shape before being sold. This makes the need for a repair even less likely.
Free Maintenance Packages
No matter what kind of car you buy, you’ll have to keep it maintained. This means things like oil changes, tire rotations and topping off any other fluids. With a regular used car, you need to pay for these maintenance jobs on your own. But with many certified pre-owned cars, the first few maintenance trips are free through the car dealers. And while these costs compared to the overall cost of the car may seem small, every little bit helps. Why pay for maintenance if you can get it for free?
Lower Financing Options
Finally, many pre-owned cars come with better financing options. Unless you’re planning on paying with cash, you likely need to take out a loan. Pre-owned cars can often get a better financing rate compared to used cars, meaning you can have smaller monthly payments and you’ll have paid less over the course of the loan. Check with your bank, or whomever is providing your financing options, and learn the difference in their rates between a used car and a certified pre-owned.
Is a Pre-Owned Car Right for You?
All that being said, a certified pre-owned car is not for everyone. While it comes with some great perks, you may not be able to afford the car you want. Certified pre-owned cars are typically cheaper than new cars, but that doesn’t make them cheap. The best thing you can do is explore the options in your area, and then decide what’s best for you. Hopefully this guide was able to shed some light on the benefits, and you’ll be able to get the car of your dreams at a price you can afford.