5 Reasons Your Next Car Should Be Used

Buying a car is a big decision, and if you’re on the fence about whether to go new or used, you’re not alone.

Many people face this dilemma, and for good reason. New cars are shiny and come with that irresistible new car smell, but used cars offer a variety of benefits that make them a smart buy.

Let’s dive into the top five reasons why you should consider purchasing a used car.

One of the most compelling reasons to buy a used car is the lower purchase price. New cars can come with a hefty price tag that includes the latest features and technologies. However, these extras often come at a premium that can significantly impact your budget.

Used cars, on the other hand, have already gone through the initial depreciation, meaning you can get more car for your money. This lower cost can also translate to lower insurance premiums and taxes, helping you save even more in the long run.

Speaking of depreciation, it’s one of the biggest financial hits you’ll take when buying a new car. The moment you drive a new car off the lot, its value drops significantly — typically around 20-30% in the first year alone.

With a used car, someone else has already taken that initial hit, so your vehicle will depreciate at a much slower rate. This means if you decide to sell your car in a few years, you’ll likely get a higher percentage of your money back compared to if you had bought new.

Insurance rates are largely based on the car’s value, so a less expensive used car will generally cost less to insure than a new one.

Additionally, some types of coverage that are often required for new cars, like gap insurance or new car replacement coverage, might not be necessary for a used vehicle. This can result in significant savings on your monthly insurance premiums, freeing up money for other expenses or goals.

The used car market is vast, with a wide range of makes, models and years to choose from. This gives you the flexibility to find a car that fits your specific needs and preferences. Whether you’re looking for a reliable commuter car, a family-friendly SUV or a sporty convertible, you’re likely to find a used car that matches your criteria.

Additionally, with the rise of certified pre-owned programs, you can purchase a used car with the confidence that it has been thoroughly inspected and comes with a warranty.

When you buy used, your budget can stretch further, allowing you to afford a higher-end model or a car with more features than you might be able to afford new.

For example, you might be able to purchase a luxury car or a vehicle with advanced technology and safety features that would be out of your price range if bought new. This can enhance your driving experience without breaking the bank.

While the allure of a new car is strong, the benefits of buying used are hard to ignore. So, next time you’re in the market for a vehicle, give the used car lot a second look. You might just find the perfect ride at the perfect price.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.