Picture this: you're wanting to purchase a vehicle, but you're not sure if you should buy a new or used car. You've looked at lots of vehicles, both new and used, and are weighing the options. It's a problem many car shoppers face. While the appeal and advantages of a new, lot-fresh vehicle with the full packages can't be overlooked, here are some reasons to go for a used vehicle instead.
1) It will save you money
This one is a bit obvious, but used vehicles are almost half the price of new cars - that's a staggering difference. Especially since many used cars are in fantastic condition and have low, one-owner miles. Although you'll miss out on that 'new car smell', you'll save a massive chunk of change in the process. Buying a new car might not break the bank, but it's a lot more financially responsible to go with a used car.
2) The majority of depreciation cost already occurred
That means you'll save even more money - if you buy a new car, it'll lose value over time, widening the gap between what you paid and what it's now worth. If you buy a certified pre owned vehicle, the depreciation has likely already occurred - meaning you're paying what it's worth now instead of losing money in the long run. Depreciation cost can make a dent in the bank if you're looking to sell your new car in the next few years, while buying used removes that factor.
3) Lower customization costs
It costs a lot less money to customize your used car as opposed to new. You also may find a used vehicle with aftermarket products or package options you're searching for already added - saving you time and money. If a used car is already customized, this won't affect the price like it would a new car. When purchasing a new vehicle, you pay for every little detail - paint color, trim level, package options, safety features and more. You can find vehicles used that check all the boxes for a fraction of the price.
4) Warranty options
If you're buying a used car, they may still have some remaining factory warranty. You'll save money and feel confident - if your car has issues, the warranty will cover it. You receive the benefits of a new-car warranty without the price tag. There are also fantastic used vehicle warranties available when buying a used car.
5) Less hidden fees
When car buyers go new, there are lots of hidden fees. It can range from dealer fees to shipping fees and more. If you're buying a used car, you avoid those hidden fees entirely - you may need to pay for a doc fee, but those are considerably less money than the stacked receipt at a new car dealership.
6) Lower insurance rates
Financing incentives are huge. Here's the kicker: gap insurance. If you get into an accident with your brand new vehicle, your insurance company will pay for what the car is worth at that time. This leaves a gap between the purchase price and what the vehicle is worth (depreciation cost comes back with a vengeance in this case). If you have gap insurance, it'll cover the difference between what you paid and the depreciated amount, but your insurance rate will be higher. This isn't a concern if you're buying a used vehicle.
In some states, registration fees can be lower based on the age of your car, too.
7) Cars are more reliable in this day and age -used vehicles still have a long life
As time has gone on, vehicles are improving in reliability - and after car shoppers have had their vehicle inspected and serviced if needed, as well as reviewed any vehicle history report, you can feel confident in buying a used vehicle. Because vehicle history reports are very accessible, giving car buyers more peace of mind. Making a car purchase is a commitment over time - and used vehicles have made many advancements that make the used car buying process reassuring. Furthermore, looking back at warranty coverage - many used cars still have some time left in their warranty; you can also get warranty coverage from the used car dealership itself. At TXG Automotive, we fully inspect, service, and detail our inventory as well as offer warranty options.
8) Variety & discontinued makes and models
Have you ever seen a head-turning vehicle; something unique you rarely see? It could be because production was discontinued. Another perk to buying a used vehicle is the opportunity of a unique find. Many one-of-a-kind vehicles are available, maybe a Chevrolet SS, a Honda S2000, or a Dodge Viper. Driving something rare (but still affordable) is another reason to buy a used car. Also, you just might find something fantastic - many discontinued vehicles have been revamped and brought back into production, such as the Ford Bronco, Ford Ranger, Jeep Gladiator, or a Jeep Grand Wagoneer. Many car buyers seek out these discontinued models. Even better - if you own a discontinued model, depreciation does occur, but eventually they may be worth more over time.
9) Perks for your trade-in
If you already own a car, we've got good news for you - trading in a used vehicle for another can save you a lot of money. TXG Automotive can offer you the highest value on your trade- we'd love to take a look. Many dealers, including us, prefer to purchase local vehicles in good condition as opposed to auction. This means that even if we don't normally carry or stock your vehicle type, we can get you the most bang for your buck. If you're a car owner and are interested in something new, we'd love to take a look at your trade.
10) Helpful knowledge from the community
New vehicles are just that - new. Recalls happen, and unforeseen problems arise. With a used vehicle, any issues or common knowledge about that car is already known - recalls have been issued and the car has been around long enough to do enough research on whether or not it's reliable. Buying a used car means lots of information online about that vehicle. The community will give their opinion, and if the car has been around for a few years, you'll have a better idea about the advantages. You can research how the used car drives, common problems, any recalls issued, and advice.
With pros and cons for both sides of the decision, buying a used car undoubtedly has many perks. New cars can be equipped with anything you need, are fresh off the lot, and often has more technology and package options than that of a used car. However, buying a used car offers money-savvy financing, help from aftermarket communities, no hidden costly dealership add-ons, insurance perks, and more. If you're considering buying a car but don't want to break the bank, or want a lower monthly payment, look no further - used vehicles are the way to go.
A common concern with buying a used car is unknown history - that's why we're thorough at TXG. We won't sell you anything we wouldn't sell a family member - reliability, transparency, and confidence are all part of our process. We buy quality vehicles then inspect, service, and detail them. We offer warranty on our vehicles so you can rest assured - you're covered. We have a passion for vehicles, and we want to share that with others. TXG finds some unique cars, as well - our variety means there's something here for everyone. Car ownership is a huge step, and whether or not it's your first rodeo, we're here to help with whatever you need. If you're not sure what you're looking for, let us help you with that process.
Come see us at TXG Automotive in Sioux Falls to test drive your next (used) car! We'd love to have you.