Financial Advantages Of Opting To Buy A Used Car

13 January 2021
 Categories: , Blog

If you are in the market for a new car, there are a variety of different ways you could go about finding what you need. But if you are looking to be as financially prudent as possible or stay under a specific dollar amount, you may be able to get more value by going with a used option. A used car that is new to you can offer multiple financial benefits now and in the future. Here's why you might want to head to a local dealer of used vehicles today.

It's Easier to Save Money By Paying Cash When Buying Used

One of the easiest ways to save money on any vehicle, new or used, is to just make a cash offer upfront and buy it outright with no loan involved. You can typically offer well below the sticker price and either get an immediate deal or a reasonable counter. Not everyone though will have the money to buy a brand new car though. 

The great thing about a used vehicle is that initial depreciation has already occurred, bringing the asking price for the vehicle into a range that might be more viable for you. The dealer may also be willing to take a lowball offer if it will still represent a profit over what they paid to acquire the vehicle from the previous owner.

Get a Loan from the Local Bank or Credit Union

When you buy a new vehicle, you will typically need to secure financing from the dealer itself, or at least that's the way most people do it. When you go used, however, you may find that there are other options that are a better fit for you financially. Some local banks or credit unions may offer a loan program specifically for buying used cars. If you decide to go this route, you may also find that your previous relationship with your bank or credit union can earn you a better rate than you might be able to get when using a dealer's financing on a brand new vehicle. Some credit unions may even offer 0 percent interest as a promotion when buying some used vehicles. 

Less Depreciation When You Decide to Move On

The initial depreciation the first owner of the car went through not only makes it easier for you to pay cash when you buy it used, but it will also make for a better financial situation when you decide it's time to move on from the used vehicle to another one. There won't be another dramatic drop in value once the car is already used, allowing you to recoup more of your investment when you decide it's time to move on some years down the line.

Keep these things in mind as you look for used cars