If you require a new vehicle, you will need to choose between purchasing one that is pre-owned or brand-new. A new vehicle may not have been owned by anyone else before, but that privilege is going to cost you. As such, you should consider going with a pre-owned vehicle instead.
1. Save Money
When you purchase a used car, even if it is only a year old, you will save money. New cars lose value the moment they are purchased and driven off the lot. So even if you want a newer used car that is only one to five years old, you are going to save significantly compared to the brand-new price of the vehicle. Buying a newer used car is a great way to get a car with all the modern features at a fraction of the new car price.
2. Deprecation Has Already Occurred
Most of the depreciation that a car faces happens within the first few years. After that, many used cars will hold their value for several years, with the deprecation process being much more gradual. That means a pre-owned car will hold its value, so if you resell it or trade it in, you should get closer to what you paid for it than if you were to purchase a new car and trade it in. If you were to go this route, you would get significantly less than what you paid for it.
3. No Hidden Fees
When you purchase a brand-new vehicle, there are often hidden fees built in, such as shipping charges, dealer preparation charges, and destination fees. When you purchase a used car, you are purchasing the car that is already on the lot, and you don't usually face the hidden fees that come with a brand-new car. You also will not face the same pressure to upgrade the car and add on features, as the car is ready to go with the features that are in place. If you want add-ons, you can do them yourself, which is usually far less expensive than going through the dealership.
4. More Affordable Insurance
A brand-new car is not only going to come with a high loan payment, but it is also going to come with a high insurance payment as well. You may also need to pay for gap insurance, further driving up the cost of providing insurance for your vehicle. With an older vehicle, the insurance will be less expensive. You will not necessarily need to carry gap insurance, as the difference between what you owe and the car's value may not even exist.
When it comes to purchasing a vehicle, going with a pre-owned vehicle will save you money on the vehicle cost and insurance. You will also not face any hidden fees or pressures for add-ons. Further, the car should also hold its value without severe depreciation. Contact a company that provides pre-owned cars, such as pre-owned Ford vehicles, for more information.