Buying a used car might not be the most glamorous thing, especially after you graduate college and start making real money. After all, most of your coworkers probably have new cars. You may feel like your old car needs an upgrade.
However, buying a used car makes a lot more sense. Not only will you likely save money upfront, a used car will save you money in the long run. With all the new expenses you have as a young adult, save your money on your vehicle and use your savings on things you really need. Here's why buying a used car makes the most sense for young adults.
The number one reason to buy a used car is you avoid a lot of the depreciation. New cars immediately lose value the minute you drive away with them. While used cars lose value too, they don't do it as rapidly as new cars. According to Edmunds.com, a new car loses 11% of its value the minute you drive it off the lot!
Buying a used car allows you to save the most money without sacrificing much on quality. A 3 to 4 year old car will be significantly cheaper than a brand new car, and many of the same features in that 3-4 year old car will be similar to the new car. By purchasing a used car, you'll save the most money and not feel the pain of immediate depreciation.
Reduce Your Insurance & Registration Costs
Car insurance for young adults usually is higher than it is for older adults. We're seen as more of a risk. By purchasing a used car, your car insurance costs should be cheaper than for a new car. It's a smart way for getting cheap insurance as a young adult.
The reason used cars are typically cheaper is that they're not worth as much as brand new cars, making the cost to replace them cheaper for the insurance company. Your used car will also cost you less in state registration fees, too, as those fees are based on your car's worth. All of these savings could add up to thousands of dollars. For that, don't you think it's worth by a slightly used car?
The Ability to Customize Your Car
One of the only things you used to lose when buying used versus new was the ability to personalize your car with specific upgrades. You can upgrade the navigation, the sound, the wheels... anything.
Or you can find one that's already customized. There are many deals on cars that have already been customized. Websites such as Kelley Blue Book, AutoTrader and Edmunds makes it easy to find the perfect car. With these sites, you can type in specifics and the search engine will do the rest. No longer does purchasing a used car mean you have to accept whatever comes along in your price range. If you want that sunroof, you can have it, as long as you have a little patience.
With the internet, it's possible to still get the car of your dreams in a decent price range. If purchasing a newer car is important to you, you may have to wait a little until the right 2014 or used 2015 model comes back on the market. But you'll eventually get what you want. No longer does buying a used car mean you have to take whatever is around in your city.
By purchasing a used car as a young adult, you'll save money by avoiding depreciation, and paying less in fees and insurance costs. With all of the other expenses you face as a young adult, saving on transportation should be quite appealing.