Buying a used car rather than purchasing a brand new one has advantages. The most essential difference is the lower price point when buying used cars in san diego. Cars are assets that suffer from depreciation. Indeed, it can be a headache for people who want to buy the latest models. It can be a favor for others satisfied to buy pre-owned cars.
Buy a used car that is a few years old, which can mean a significant saving. Consider those older cars may require more repair and maintenance. Where is the right spot to buy a used car? Is there the best age of a used car idea to buy?
Depreciation works differently
Always keep in mind that depreciation works differently for new and used cars. New cars will depreciate much faster compared to used cars. Once you drive the new car off the road, it already loses a percentage of its value immediately. For an average of one year, a car will lose 20% of its value. Thus, a car may lose about 15-25% of the current value each year for 5 years. Depreciation still happens, yet at a slower rate.
The used car age
When taking these figures, buying a car that is 2-3 years old means you are getting a nearly brand new car while taking no depreciation. For example, a new car that costs you $30, 000 can be yours for just around $16, 000 to $20, 000 when you wait for 2-3 years to purchase it. Further savings is guaranteed if you buy an older car.
An old car typically loses around 60% of the value. Indeed, a $30, 000 car can be yours for just around $12, 000.
Factors affecting depreciation
Car models depreciate at their different speeds. For example, luxury sports cars have a high rate of depreciation. It is because the typical buyer wants the newest model of car. The mentioned cars below currently have some lowest 5-year depreciation figures:
- Jeep Wrangler
- Toyota Tacoma
- Nissan Frontier
Conversely, cars with recalls also known as expensive to repair have high depreciation.
Consider maintenance costs
Modern cars are functional and in good condition even as they age. Although it is possible to have a history of repair to these used cars, still it works like brand new. The car dealership makes sure of the maintenance of these used cars to satisfy every buyer. Understandably, old cars might have a history of accidents, yet these cars are repaired and have replaced defective parts, turning them into brand new-like cars.
More than just the sticker price
Don’t forget that newer models have advantages over their older counterparts. For example, electronic stability control of cars in 2012 was mandated for all. The side curtain airbags begin to be standard in most cars added with backup cameras. Other advanced active safety features are also added to these car models. So, it is a wise idea to consider it when buying a used car.
Potential car buyers must be aware of all of these to be aware if they can save from buying a used car or not.