In February 2020, the new cars and trucks had an average transaction price of $37,876. That’s almost 3% higher — — or a whopping $975 more — than the year before!
Fast forward a month after, and prices hiked up again by at least another 3%. In March 2020, the ATP of new cars and trucks gained an extra $972 from the month before.
All these prove how buying a brand-new vehicle is quickly becoming more expensive.
This has then led to many car buyers in the US opting for pre-owned cars. These vehicles, although no longer fresh-from-the-factory, cost way less than their brand-new counterparts.
The lower price tag isn’t the only thing that makes pre-owned cars for sale attractive though. There are plenty of other reasons you should go pre-owned, and we’ve rounded them up all in this list. Keep reading to learn what we mean!
Pre-Owned Cars Go Through Quality Checks
Before you Google “pre-owned cars for sale near me”, let’s talk about how these differ from “used cars” first.
Pre-owned vehicles are also used vehicles. However, pre-owned wheels aren’t sold outright, unlike most run-of-the-mill vehicles. So long as you finance or lease a pre-owned car from a reliable dealership, you can expect it to be of better quality.
That’s because dealerships offering pre-owned vehicles have quality testing protocols. This means that they run all cars and trucks through extensive inspections first. They conduct quality tests on their products, ensuring that all meet certain standards.
Reliable car dealerships do these tests to ensure they’re not about to sell a lemon car or a crashed vehicle. For instance, they first check for any insurance claims made on the vehicle. They’ll also confirm with the local DMV if the car has a history of flood damage or if it was part of a property crime.
That’s how a trustworthy car dealership in Florida can guarantee the quality of their “used” vehicles.
Whereas pre-owned cars for sale by owner don’t come with the same guarantee. While most car sellers fix their rides before putting it up for sale, these fixes may be more cosmetic in nature.
As such, if you buy straight from a car owner, you run the risk of dealing with car troubles sooner.
Pre-Owned Vehicles From Dealerships Come With Warranties
Most cars bought directly from their previous owners often don’t come with a warranty. Even if they do, they’re usually only good for a few months. After that, you’ll be responsible for the costs of repairs that are likely to happen.
If you buy a pre-owned car from a dealership, you can expect a much better, longer warranty. You can even get an extended warranty on your pre-owned vehicle purchase.
Also, keep in mind that pre-owned vehicles have undergone extensive tests and fixes. That makes them far less likely to break down in just a few months.
Slower (And Lower) Depreciation Rate
Brand-new vehicles depreciate as soon as you leave the dealership. Once you’ve owned it for 12 months, it’ll depreciate by at least 20%. So, if you buy a $30,000 vehicle now, it’ll be worth at least $6,000 less in a year.
Pre-owned cars still go down in value, but their depreciation isn’t as bad or as quick as brand new ones. Also, since you’ll pay less for a pre-owned vehicle, its depreciation cost is also lower.
Lower Price Equates to More Choices
If you buy a brand-new vehicle, your $30,000 will likely only give you the base trim of the model you want. If you want your ride to have more bells and whistles, you’d need to shell out even more cash.
Going pre-owned, on the other hand, gives your hard-earned cash more value. The same $30,000 will get you an older model, yes, but one that comes with more features and upgrades. You may even have some left-over cash enough to cover a trim upgrade or interior updates!
Besides, just because it’s an older model doesn’t mean that it’s not on par with the latest model.
After all, many of the latest car and light truck models don’t always undergo major revamping. Especially not under the hood, which is what matters the most. That makes them almost the same as their year-old predecessor, except maybe for a few techy extras.
Financing and Leases for Pre-Owned Vehicles are Available
As of the second quarter of 2019, the average FICO score in the US was 703. In the lending industry, this qualifies as a “good” credit score.
Unfortunately, most consumers aged 20 to 49 years old have credit scores below the 700 mark. If yours belong in this category, you may have a hard time securing a good deal on a traditional car loan.
In this case, consider financing your car purchase through a reputable dealership. You can also opt for a lease, which won’t come with the same contract as a financing program. Either way, such dealership deals are a good alternative to traditional car loans.
Get the Most Bang for Your Buck With a Pre-Owned Car
There you have it, your ultimate guide on what makes pre-owned cars such a great deal. Compared to regular used cars, pre-owned ones come with a safety and quality guarantee. Compared to brand-new cars, they’re more cost-effective, making them a more practical choice.
So, before you shell out money for a used or a brand-new car, consider your pre-owned options first. This way, you can extend the value of your cash and get the best bang for your buck.
Ready to explore all your new and pre-owned car or truck options? Then please feel free to browse our extensive collection of vehicles for sale! You can also connect with us and we’ll be happy to answer your inquiries.