While buying a new car is enticing, you should take a cold, hard look at how much you could save over time by buying used cars instead.
The average person owns 13 cars in a lifetime, each costing an average of $30,000, according to a report by the National Automobile Dealers Association. If each of those cars was 3 years old, instead of new, you could save nearly $130,000 during your lifetime.
You often hear that a car loses 20% of its value as soon as you buy it. Yes, in just one minute, a $30,000 car will lose $6,000 as you gleefully drive off. By the end of the first year, mileage and wear and tear could bring that to 30%, or $9,000. Why don’t you feel this big hit? Because it takes effect much later, when you sell or trade in your car.
There are people that will say "But driving a brand new car is much better!" and they have various reasons for believing so.
It’s clear that buying a used car is much cheaper than buying new. We know that cars in general are more dependable than they once were because the quality of automobiles in general has improved over the years. Buying used is an opportunity to get the best car for your money. You can often find a late-model used car priced at less than half the cost of a new one. If you trade your car in every few years the way many people do, you aren't likely to notice the difference between a used vehicle and a new one because most modern cars will go 100,000 miles or more with few mechanical difficulties. Buying a car that has 40,000 miles on the odometer is likely to result in 60,000 or more miles of trouble-free driving. Some vehicles now offer drive-train warranties that cover the most expensive components of your drive train for 200,000 miles. If savings and reliability aren’t the only things holding you back, here are a few other advantages: