You’ll likely pay more to insure a brand new car. Some insurance companies raise the rates of new cars because they have the most chance of their parts being recalled. Also, crash rates for new cars are sometimes higher than for older cars. Again, this may be due to new cars having safety recalls. And of course, you’ll have to buy collision coverage for a new car, whereas that would be optional if you buy an older vehicle for cash.
Parts for older cars are usually cheaper than new ones and are available in more places. You can shop for the best prices online, or even try some junkyards.
Sometimes people want to buy new cars for the sake of the warranty. But even then, the warranty won’t last you for the life of the car anyway. It varies but may be along the lines of 3 years/30,000 miles, whichever comes first. So, check the options for used cars. Some places can offer you a warranty for a used car, so you can enjoy some peace of mind.
6. Changes in Needs
Suppose you buy a new sports car. Then you meet the man/woman of your dreams and decide to start a family. Now you’re stuck trying to trade it in for a minivan. If you buy used, you won’t have to worry about a high-priced car loan to unload.
7. Older can be better
See if you can pick up a bargain on a classic, or soon-to-be-classic car. It will have more resale appeal than a plain boxy sedan – or, if you’re a motorhead, you can enjoy doing a restoration project.
8. Environmental issues
9. Avoiding economic risks
Still not convinced why it makes sense to buy a used car? Check for yourself to see that even with 0% financing, a new car can cost you more. Try this free calculator from Consumer Reports and you can compare all the costs of buying new vs. used cars.
Photo credit via Flickr (SeeMidTN.com (aka Brent), ASurroca, davesandford, jcrakow, aussiegall, Toyota UK, Martin Pettitt, stevelyon, Jeremy Brooks, Refracted Moments)