One of the biggest choices you have to make when shopping for a vehicle is deciding whether to purchase a new vehicle or a used vehicle. Used car sales have become much more reliable and better-regulated throughout the past several years, and many more drivers have been moving away from buying new cars and toward buying pre-owned cars as a result.
However, many drivers are still unsure of whether to buy a new or used car. There are advantages and disadvantages to both buying a new car and buying a used car, which makes the decision even more of a challenge for many drivers.
If you’re in the market for a car and are struggling to make the choice between buying new and buying used, keep reading to discover five reasons why buying a pre-owned GMC vehicle might be the best option for you and your budget.
Cut Down on Depreciation
One of the biggest disadvantages of buying a new car is that new cars depreciate significantly in value right away. A brand-new car can lose up to 20% of its value as soon as you drive it off the dealership lot and continues to lose 10% to 15% of its value every year.
Used cars, on the other hand, retain their value much more steadily over time. In fact, if you take good care of your used car and sell it a few years after you pay it off, you might even be able to get back close to the same amount you once paid for your car when you eventually sell it. Some drivers even end up making a profit on their used car, depending on its condition and the market at the time of sale and purchase.
Get a Reputable Model
When you buy a brand-new car, that car has likely been on the market for less than a year. That means that a new car model doesn’t have much time to gain many reliable critical reviews before you buy it. Some major problems about certain car models don’t get discovered and recalled until a full year or even several years after the initial release of the car.
Most used cars, on the other hand, are on the market for several years before you buy them. A used car model has more time to develop a reliable, consistent negative or positive reputation, which allows you to steer clear of badly-reviewed models as you shop—as long as you read critical reviews before you buy.
Score Lower Insurance Rates
Car insurance rates are based on a wide variety of factors. One of the biggest determining factors of your car insurance rate, though, is whether or not you need gap insurance.
Gap insurance is designed to make up for the gap between the price you paid for your new car and its depreciated value. It protects you in the case that you get in an accident soon after you buy your new car, but gap insurance coverage also equals higher insurance rates.
When you insure a used car, the value of that used car has already undergone the bulk of its depreciation. That means you don’t have to worry about gap insurance coverage for your used car, so your insurance premiums will be lower than they would be if you were insuring a new car.
In addition to lower insurance rates, annual registration costs are also less expensive for used cars because these costs are based primarily on a car’s value and model year and therefore decrease with a car’s age.
Skip Out on Add-On Fees
New cars tend to come with a variety of add-on fees that used cars do not. When you buy a new car, you might end up paying a full few thousand dollars in extra add-on fees at the time you purchase the car.
When you buy a used car, on the other hand, you probably won’t be hit with many—if any—unexpected fees. When you head to your local dealership to buy a used car, you’ll know exactly how much you’ll be paying for that car before you drive it home.
Reduce Your Carbon Footprint
The new car industry is terrible for the environment. During the process of manufacturing a brand-new car and shipping that car from its manufacturing plant to a car dealership where it can be sold, the new car produces up to 25% of the carbon dioxide that it will produce throughout its entire lifetime.
That means that, when you buy a used car, you are giving new life to a car that has probably already produced the bulk of the total amount of carbon dioxide it will produce in its entire life. Buying a used car, therefore, reduces your carbon footprint and has less of a negative impact on the environment than buying a new car.
There are many advantages to buying a used car. If you’re in the market for a used car, contact your local official GMC dealership today to get the best deal on used and pre-owned GMC vehicles in your area.