Yes, new cars smell great, but how much is that really worth to you?
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It is time to replace your current vehicle and many prospective car buyers are faced with one hard, controversial decision: Do you buy a New or Used vehicle? There are many good reasons to buy a used car, such as having a greater selection of vehicles in your price range, but probably the biggest draw for used-car buyers is affordability. Buying a used car could get you the most vehicle for your money by far, but has a little more risk involved.
There is no doubt that buying a used car compared to buying a new car is going to be less expensive. New car owners often take a significant knock as brand new cars can lose a lot its value in the first year alone! Second hand buyers has the added advantage of being able to step up to a better model within the same price range.
It is really true that once you drive a new car off the showroom floor, its value will drop instantly. Cars depreciate steadily over time, but the steepest decline usually happens within the first two years of ownership. In rare instances, some models can even lose 40 percent or more of their value in the first year. With a used car, there is still depreciation, just a lot less rapidly.
Improved reliability with certified pre-owned programs
Even though used vehicles usually don’t carry the same factory warranties as new cars, the original maintenance plan on a new car is often transferable to a second owner, even when buying from a private seller. If you buy a certified pre-owned vehicle from an authorized dealer you can also opt to purchase an extended warranty for the vehicle.