How buying a used car saves money

The moment you drive a brand new vehicle off the dealership lot, it becomes a used car. Unless you have a high credit score, the benefits of buying a new car usually don’t involve saving money. First we show you how buying a used car saves money, then we’ll review what to look for when buying a used car so you can shop with confidence.

Ways that Buying a Used Car Saves Money

There are plenty of reasons why purchasing a used car is a savvy financial move. First and foremost, it can help you conserve a significant amount of money in the long run. Since used cars are typically priced lower than brand new models, you'll be able to make a substantial saving on the purchase price upfront. Plus, insurance premiums for used cars are usually lower since they have a lower value.

Advantages of Buying a Used Car From a Dealership

When you invest in a brand new car, you'll see an instant drop in the value, known as depreciation, within the first few years. In contrast, a used car has already taken this depreciation hit, so you'll be less affected by any financial loss. At Auto Excell we only offer certified pre-owned vehicles with full history reports in our inventory so you can actually see most of the maintenance and the frequency that it was carried out.

Additionally, used vehicles have typically endured most of the initial wear and tear, saving you money on maintenance costs.

Research the Make and Model

By doing thorough research, you can identify a reliable used car that won't require as much maintenance, repairs, or additional specialty maintenance, therefore reducing your overall expenditure. Consequently, purchasing a used car is a cost-effective way to get reliable transportation at a fraction of the cost of a brand new car, with or without a high credit score.

Certain makes/models of vehicles from a specific year may be prone to rusting early, or have problematic transmissions, etc. It's simply better to do your research first so you can know what to expect.

What to Look for When Buying a Used Car?

When looking for a used car, there are several things you should check to ensure you are getting a reliable vehicle.

First and foremost, check the car's history report to see if it has been in any accidents, had any major repairs, or has a salvage title. Next, inspect the exterior and interior of the car for any signs of damage or wear and tear.

Check the engine and transmission for any leaks or unusual noises. Make sure all the lights, heat/AC, and electronics are in working order.

Take the car for a test drive and evaluate its handling, acceleration, and braking.

You can also get a trusted mechanic to inspect the car before making your final decision. By thoroughly inspecting a used car, you can ensure that you are making a wise investment that will serve you well for years to come.

Should I Still Buy a Used Car with Good Credit?

Good credit can help with financing and lower interest rates when buying a used car, but there are risks involved. Research the car's history, maintenance records, condition, and consider future repair costs. Some brand new vehicles actually have to go for more repairs than used vehicles due to factory recalls, or may still have "unofficial" defects.

Have a mechanic inspect it if possible. Overall, buying a used car with good or bad credit can be a smart decision, as long as you are diligent in ensuring the reliability and maintenance requirements.