If you buy a used car, you will surely save a lot of money upfront, as well as over cycles of ownership, however, a brand-new car also has its own sets of advantages.
For sure, buying a brand-new car is very enticing, you should take a second look at how much you could save eventually if you decide to buy a used car instead.
In the United States, an average person owns less than 13 cars in a lifetime, and each costs more than $30,000 each, according to the statistics released by the National Automobile Dealers Association or (NADA), and each of that car is averaging three years old, and if you come to think of it, instead of buying a brand new car, you can actually save a whopping $130,000 in your lifetime.
Depreciation is the main reason why buying a used car is a real key to save a lot of money. Depreciation is the main reason why a lot of well-conditioned and still good looking cars end up in used car dealerships such as in a dealership of used cars in Selma where a lot of luxury cars that are now a lot cheaper than its original price.
When it comes to depreciation, you might have heard that regardless of the car’s model, brand, and its type, it will likely lose 20 percent of its total value once it is driven out from the dealership, and if you come to think of it, you already lost $6,000 from a $30,000 car as you joyfully took your first drive of it. After one year, your car’s depreciation rate climbs to 30 percent which is already $9,000, and for sure you will just ignore this fact, but the truth is, this effect will be felt later when you decide to trade in your car.
A brand-new car depreciation will cut the total cost of $30,000 to $15,000 after three years, while the used car depreciation after three years you can buy it for only $15,000, and you can resell it for $10,000 with a depreciation cost of $5,000. Yes, driving a brand-new car is much better than driving a used car, but, if you think of it that you are actually driving that brand-new car that will soon cost you $10,000.
A lot of people are swayed by the fact that brand-new cars are far better than used cars. This stigma has been around for many years already. A lot of car owners dispose of their used cars because of a stupid reason that they just want to get rid of it and say that it was just their way to buy someone else’s problems if they are asked if they want to buy a used car. Well, that is not true because the technology that we enjoy today are also applied to the cars that are manufactured today, meaning, these cars are far more durable, efficient, and has a long lifespan compared to cars two to three decades ago.
The bottom line is, if you buy a brand-new car, why not use it for its entire lifespan? And, if you have a tight budget, the number one option would be buying a used car, but in the end, the decision lies in your hands.