5 Reasons Why You Should Buy Used
Valerie Raskovic
To start off, let’s be honest with ourselves and admin that there’s something undeniably exciting about driving a brand-new car off the lot. We can appreciate the idea of being the vehicle’s first owner and experiencing that new-car smell, the untouched interior, the factory warranty and just driving a car free from any imperfections normally attributed to regular yearly use. But here’s the thing: that excitement usually comes with a steep price and usually starts shrinking the second you sign the papers. In fact, your brand-new car could lose up to 20% of its value the moment you drive it off the dealership lot.
That’s one of the main reasons why so many drivers prefer to buy used. Beyond it being a more responsible financial choice for budget-minded consumers, it may also come with the added benefit of increased value per dollar. We were able to isolate 5 unique benefits of buying a preowned car and we have outlined them below:
1. You Avoid the Steepest Depreciation During the First 2 Years of Ownership.
Depreciation is the silent killer of car value and new vehicles tend to experience the highest depreciation rate within the first couple of years. For example, an Audi e-tron will depreciate up to 60% within the first 2 years alone. This means if you bought this car new in 2023 for $75,195, in 2025 it will only be worth roughly around $30,000 on the used car market. While not all car companies and cars are created equal and the e-tron tends to experience a higher-than-average initial depreciation rate, it is not that uncommon to see over 50% depression within the first 2 years, especially when shopping for Italian and German luxury brands like Maserati, BMW, Audi and Mercedes.
While a new car’s drop in value is unavoidable, buying used means someone else took that initial hit. A three-year-old vehicle, for example, has already absorbed most of its initial depreciation, but since it is relatively new and if it was maintained properly by the previous owner, it can be in near-perfect condition, in some cases indistinguishable from new. Bottom line, buying a used 2 or 3-year-old car can get you nearly new technology, comfort, and reliability without the financial whiplash.
2. Time-Proven Technology
Driven by fierce competition and consumer demand for the "latest and greatest," car manufacturers often rush freshly redesigned models or significantly updated versions of existing ones to market. This compressed development cycle can mean those cars hit dealerships with exciting new technology and styling but without the long-term real-world testing to identify all the gremlins that may be lurking beneath the surface. Especially when introducing complex new hybrid and force induction powertrains, infotainment systems, or driver-assistance features not offered before. These new generations can be more prone to initial "teething issues," recalls or unforeseen reliability quirks. As a rule of thumb, the previous generation of a model, especially one with a long production run towards the end of its lifecycle, often comes with the benefit of having its kinks thoroughly ironed out. Years of manufacturing refinements, software updates, and accumulated consumer feedback typically translate into better-proven long-term reliability and fewer frustrating bugs compared to the brand-new, yet unproven, replacement sitting next to it on the showroom floor.
Statistically you will have an overall better ownership experience with fewer unexpected failures and repairs with outgoing generation model vehicles than one that has been introduced recently.
One example is the Jeep Grand Cherokee WK, which started production in 2011 and came to a halt in 2022. While the earlier models did suffer from some common elements, the later WK models tend to be a bit more reliable. However, the same cannot be said about the Grand Cherokee WL, which came into production in 2021 alongside the previous generation. According to Consumer Report’s long-term satisfaction, the new WL model tends to be considerably lower than the previous generation WK. This is mainly attributed to issues that customers have reported experiencing with newly introduced technology and drivetrain options that were not made available in the previous generation model.
3. Modern Cars Last Longer Than Ever
Thanks to better engineering, improved materials, and synthetic oils, today’s cars are built to go the distance. According to Consumer Reports, the average lifespan of a modern vehicle is now over 200,000 miles.
While not all modern cars are made equal, with regular maintenance cars made by trusted. Brands like Toyota, Honda, Acura, Lexus and Subaru tend to last the test of time. For example, with proper care, the Toyota Camry or Honda Accord routinely racks up over 250,000 miles through its useful life cycle. Even luxury brands like Lexus and Acura have models that regularly outlive their warranties.
If you feel that you need the added security that comes when buying a new car, not to worry. You can get that same or even better level of warranty coverage and protection when buying a Certified Pre-Owned (CPO) vehicle. CPO vehicles go through a rigorous multi-point inspection and come with an extended warranty that exceeds the new car warranty coverage by leaps and bounds (often 7 years/100,000 miles). CPO vehicles also come with added protection, which includes roadside assistance and a limited-time return policy. Essentially, it is possible to get the same peace of mind buying a used car as you would buying new, all at a fraction of the cost.
4. More Car for Your Money
Want leather seats, a sunroof, adaptive cruise control, or a premium sound system? With a used car, those luxury features are suddenly within reach without stretching your budget. By buying used, you are not only saving money, but you are also upgrading your driving experience.
For example, a new base-model Honda CR-V costs around $30,100. For this price the car will come with cloth seats and basic equipment. However, for the same price, you could buy a three-year-old CR-V Touring model with all the bells and whistles, including premium sound, heated seats, a hands-free power liftgate and more...
5. Lower Insurance, Tax and Registration Costs
Insurance premiums, taxes and in some states even the vehicle registration are all based on a car’s value, so a used car typically costs less to register and insure. According to NerdWallet, drivers who buy a three-year-old vehicle can save 10 to 20% annually on insurance compared to buying new.
And in many states, registration and sales tax are also lower because they’re calculated on the car’s current market value, not its original MSRP. Over five years, those savings can add up to hundreds or even thousands of dollars.
Final Thoughts
Buying a used car isn’t about settling for less. It’s about getting more value per money by avoiding unnecessary depreciation and driving a high-quality vehicle without draining your savings.
With today’s advanced diagnostics, vehicle history reports and CPO guarantees, the used car market has never been safer or smarter. So, the next time you’re in the market for a new ride, ask yourself: Is it really worth buying brand new?
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