5 Reasons You Should Buy a Used Car vs. New
For many, buying a new car is one of the biggest and most important moments of their lives. It takes a lot of time, patience, and—of course—money to achieve. But far too many people settle for new cars out of habit or convenience without thinking about used car options.
Auto Bank serves the Gladstone, Kansas City Northland, Parkville, and Liberty, Missouri, areas as the most affordable, dependable, and efficient buy here pay here dealership. Rather than spending time scouring online listings for budget cars or listening to new car salespeople try to upsell to a vehicle you don’t want, consider a used car from a buy here pay here car lot.
Here are five reasons why buying a used car over a new one is worth your while
Used Car Lots Help You Stay in Budget
Before doing any car shopping, you should always figure out your budget.
Is budgeting new to you? Here’s a quick look at one way to do it. First, determine how much you make each month on average. Although this number may fluctuate, you can determine this by looking at your most recent tax return and looking at your taxable income. Subtract the amount you pay for housing, bills, groceries, 401k, monthly savings, and other expenses from that amount.
What you are left with after calculating this is how much spending money you have. This amount should never be your car spending limit because you will always want a little extra money available to you in case of an emergency. Instead, use this amount to determine how much you would feel comfortable paying each month toward a car.
When you shop for new cars, staying in the confines of a budget can be extremely hard. This is not only because new vehicles are typically more expensive, but also because new car salespeople often work on commission. Commission-based sales mean that they get paid based on the amount they sell.
At Auto Bank and other buy here pay here dealerships, this isn’t the case. We want to make sure that you get a great, affordable car. Before you shop with us, we’ll have you apply for our in-house buy here pay here car financing. This will help you understand exactly how much funding you will receive from us, which will help you shop smarter. At AutoBank, we will only show you cars that we know fit into your budget, which saves you time and frustration.
New Cars Depreciate Rapidly
The average person owns their cars for just over six years. For some, this is hardly enough time to pay off the loan they took out on the car—and those loans always include interest. Each year that you own a car, the vehicle continues to lose value. Although this is true of all vehicles, it is especially true of newer cars.
If you intend to purchase a car for the short term, you’re better off buying used. If you take good care of the car in the time that you own it, then you will get back much more of the money you initially paid for the car.
Cars from Pay Here Buy Here Lots Make Great Second Cars
Think that one car is enough? Most Americans don’t.
Although public transportation is better than ever, a whopping 35% of Americans own three or more cars per household. This means that each American family owns an average of 2.25 vehicles. To get kids to school, adults to jobs, and to navigate the complex social activities that keep most American homes running, it makes sense that there would be more than one car per household.
But to pay new prices for two cars? Most cannot afford it. Luckily, buy here pay here car lots offer affordable alternatives for people who need more than one ride.
Used Cars Are Great for New Drivers
Turning sixteen and getting your driver’s license is a rite of passage. If you have a teenager in the Kansas City area, you’ll likely be teaching them how to drive and even equipping them with their own car (to help you with errands, of course!)
Getting a reliable, used car is a great way to help a teen feel independent without straining your wallet. As well as providing you with a lower purchase price, used cars are suitable for teen drivers because:
- It’s cheaper to insure a used car. If you have a young driver, your insurance will probably be expensive, anyway. Lower the premium by insuring a cheaper car.
- Used cars offer a great chance to learn maintenance skills. Your teen is going to be rough on their first car. Help them learn how to change a tire, install new windshield wipers, and more, without paying a ton out of pocket on the initial purchase price of the vehicle.
- Used cars help teach responsibility. Taking care of an older car takes just as much attention (if not more) as taking care of a new one. Your teen will need to remember to schedule maintenance, like oil changes and tire rotations, to keep their used car running better, longer.
Used Cars Can Still Look & Run Great
No matter what kind of vehicle you’re considering, know that well-maintained used cars have a lot to offer! They often have low mileage, pristine interiors, and a clean history to boot. Plus, if you do a little of your own research, you’ll find that particular car makes and models from previous model years are historically more reliable that some newer cars (think many Volvo models, the 4Runner, and the humble Honda Civic). When you leave room for used cars in your life, your purchase possibilities grow, especially at buy here pay here car lots. At AutoBank, our technicians perform a detailed inspection of every car we have. Moreover, these skilled engineers can spot the things a regular buyer may miss. In this way, we make sure all the vehicles on our car lot are reliable for you.