Richmond Toyota

Why Buy Used

While the economy is at a low point, many may think twice about buying a brand new car.  The Used Car sector of the auto industry is on the rise, and more than ever, people are finding out that buying a pre- owned vehicle comes with a long list of benefits.  Furthermore, the depreciation of a new car is incredibly high, with the value dropping the most in the first year. When a consumer opts to instead buy a car that it is just a few years old, they can save thousands, yet still have top rated transportation.  The average price of a used vehicle is about $14,000 less than a new one.  The fact is, a car that is driven and treated with care should remain dependable for at least 10 years and 100,000 miles.  There is a wide range of used vehicles available, from recent models, to cars from the ‘80s.  So, if you are in the market for a vehicle, don’t assume that new is the only way to go, it may be worthwhile to consider pre-owned.

A ‘Green’ alternative
 
Buying a hybrid or very efficient new vehicle is a great way to reduce your carbon footprint and save on gas.  But there is an alternative: buying used. Hybrids may get great gas mileage, but it takes 113 million BTUs of energy to make a Toyota Prius. Because there are about 113,000 BTUs of energy in a gallon of gasoline, the Prius has consumed the equivalent of 1,000 gallons of gasoline before it reaches the showroom.   That is a lot of carbon, and it would take many miles to make up for that.  As long as the used car is relatively fuel efficient, the debt has already been paid. 


Safety features available

It is true that a brand new vehicle will offer the latest technology and safety features. But a newer used car is likely to have the more common safety features such as antilock brakes, traction control, and front and side air bags. So, buying used does not mean totally foregoing safety.


Made in the USA

American cars are known to be among the best used-car values.  The reason for this is that they tend to be of excellent quality and reliability.   Some believe the thought that American made vehicles are not as good those from Japanese automakers, but this is not true.  In fact, that assumption helps American cars depreciate more quickly and makes them better used-car values.   Overall, American cars have strong mechanical and structural designs, and they are often less expensive to repair because of lower-priced parts, and more common repair facilities.

The depreciation factor

A car's value in just the first year of the car's life depreciates rapidly — from 20 to 45 percent. Depreciation is a big key to used-car savings.  A three-year-old vehicle has already taken its biggest hit  in resale value.  All in all, this means lower prices for used cars, which in turn mean lower finance charges and sales tax.  Several factors determine depreciation, including the model's popularity, quality, supply, and whether or not the vehicle is of the current design. When a car model is totally revamped, especially if the name is changed, the older version usually drops in value more quickly.  Those used cars are generally good buys. 

Former leases

To avoid penalties at the end of a lease, drivers must keep the car clean, under a certain number of miles, and well maintained. Used cars that were formerly leased are often a good value because of their excellent condition.  As leases have become popular, large numbers of well-maintained, 2- to 3-year-old cars are coming off lease in increasing numbers.  These vehicles practically qualify as new, even in appearance; an added bonus is they usually are still covered by the remainder of their original warranties. 

True savings

We all know used cars cost less than new ones. But if you look at the overall owner costs you can see an even greater value. Depreciation, fuel usage, insurance, interest on financing, maintenance and repairs, and sales tax are all factors that make buying a used car worth it.  The average trade-in is only 4 1/2 years old with just 41,000 miles on it.  This results in a lot of good cars available with lots of life left in them.   Used vehicles that are later models are often the best values you'll find in the automotive market. Not only is the price lower than a comparable new car, but ownership expenses are simply lower.

Reliability going up

Used cars have automatically become more appealing, because of their improved reliability.  As a result, buying a late-model used vehicle is not as much of a risk as it used to be, and this has helped the sector grow the way it has been.  When properly maintained, today's vehicles should go well past 100,000 miles, and many could reach 200,000 miles without a major breakdown. 

Finding a used car that is reliable, safe, fuel efficient and valuable is a great alternative to spending thousands more for a new vehicle.   Today, used car buyers do not have to give up all the perks of a nice vehicle just to get a bargain.  Furthermore, if more people bought used, there would be less of a demand for new cars, less would be produced, and there would be a positive effect on the environment, as making a car, alone, creates high emissions.  Used cars can be found in a variety of places, from online to a franchised dealership, to a private sale.  As long as you do a history check, a thorough inspection, and plenty of research, you will know that you are getting a good value.