Avoid The Effects of Depreciation – Buy Used Vehicles

You may love that new car scent, the pristine condition and all the other perks of a brand-new vehicle. But it’s going to cost you. Consider used vehicles, instead.

A new car loses on average 11 percent of its value as soon as you drive it off the dealership lot. So if you want to get you’re money’s worth, avoid depreciation and still drive the car of your dreams, buying used is the way to go. And there are many cars available that are just a few years old, so it’s the next best thing to new.

You Can Save Money

Generally a car will depreciate 15 to 25 percent every year for the first five years. So you’re left with a vehicle that’s only worth maybe a third of its original value after that time. And did you know that cars with optional features like power sunroofs, leather and heated seats, cause the vehicle to depreciate quicker?
So buying a reliable used car, in good condition, that’s five or more years old, can save you a bundle. Especially if it’s a pickup you’re after. Used trucks are far more inexpensive, and give you everything you can get in a new model.

What To Look For in a Used Car

Cost, reliability, low to medium mileage and of course, the general condition, are all major factors when looking for a used car. Then you have to consider the car’s age and safety features. And depending on where you purchase the vehicle, from a dealership, used car lot, or an individual, you also have to factor in whether there are existing warranties. Remember the old adage with any used purchase – buyer beware! So you have to do your homework.

Where to Look

From Craigslist, Facebook Marketplace, and online dealerships,
to well-known sites like AutoTrader, Carfax, CarsDirect and CarGurus, there are countless resources available. You can also visit used car lots (just be careful before buying anything) and browse at your local dealership used car lots. Buying from a dealership will be a different experience from buying from a private owner, so do your homework.

Want a Newer Used Car?

If you want something newer and still avoid the first year of depreciation (when a new car loses the most money, on average, 20 percent) then you can try new car dealers or rental car companies. New car dealers will have a list of used cars and they often sell lease returns and you can find a great deal. Some rental car companies sell their vehicles after about 12 months, and they’re usually low mileage, inspected and test-driven and often still have factory warranties.

When you see a car you like and you’re not sure if the price is right, check Kelley Blue Book to make sure it’s fair.

Whether it’s a first car for your teenager, a mini van for the family or a truck for work, buying used is the best way to find a great deal and avoid depreciation.