I once read on a consumer report article as a young man that in order to get the most value out of a vehicle one should look for a used car for sale and essentially drive it until it is basically no longer drivable. While this is a basic general rule of thumb that was someone’s opinion, it has served me and many well.
You have probably heard the age old saying that a car loses value as soon as you drive it off the dealers lot. Many would say upwards of 15% of its value is instantly lost this way. By the time a car is 4 years old with average driving on it, it is approximately worth only half of its original value. It is no wonder why the used car market is doing so well. There are plenty of great cars out there and if you can get them close to half off and only be four years old you have to wonder why you would want to buy new. There are several other financial reasons as to why purchasing a used car will save you more money.
Today’s vehicles last longer than ones from years ago. The warranties are better and one can put on many more miles before typical problems start to become evident. This provides the buyer with a longer assurance time and “more bang for their buck”. The 200,000 km mark is the new 100,000. Picking up a used car a few years old usually still has a lot of life left in it.
Your vehicle insurance rates will be less with a used car compared to new. Since the blue book value is less than new, it costs less to ensure it. The parts to repair it may even be cheaper due to an older product and there could be some after market parts available. Depending on the value of your vehicle, you may also decide to insure it less than you would feel compelled for a brand new one. Generally people will not mind as much if there is a small ding or rock chip in a used car compared to new, thus encouraging less insurance. Which brings about my last point of not being as concerned as a new car.
I have not always enjoyed the benefits of buying used. I did on one occasion purchase new before realizing how much I would save buying used. While it was a nice experience, I always was paranoid of not only my payments, but if absolutely anything was wrong with it. A tiny scratch, or mark made me angry, I felt I had to wash it more often and vacuum the inside with any showing of dirt. It basically started to own me. However after a few years, I was more relaxed with it. I still kept it up, but not obsessively like when it was new. Over all, the amount of money you end up saving with the purchase of a used car is really all one needs to realize to make it worth your while any mental benefit is just a bonus. Using Hertz to find a used car is a great site to visit when looking. Their large database and easy to use interface allows for quick access to whatever kind of car you may be looking for.