Buying a used car is a great option for anyone looking to save a little cash. And you don’t always need to sacrifice when buying a used car; in fact, there are millions of used cars in pristine condition with low miles. Aside from being less expensive up front, used cars generally retain their value longer than new cars.

Planning to resell your car in the future? Buying a used car is usually the better option for this, since their value does not depreciate as quickly as new cars. There are a few other benefits to buying used, including:

Benefits of Buying a Used Car

Budget-friendly. You may have an easier time finding a used car that fits into your budget, without having to sacrifice your preferences. Did you know used cars cost almost 50% less than new cars? If you take out a loan to pay for the car, the payments will be much lower!

For example, if you’re looking to buy a bigger vehicle like a truck or minivan, you can typically find a used one at a lower price.

No hidden fees. New cars generally include additional fees, like for shipping, and sales taxes that can set you back a few hundred extra dollars. This is not the case with used cars, since most of these fees were paid by the first owner.

Flexible pricing. Unlike new cars that typically have a standard price, used cars have more flexible prices. You have a bit of room to negotiate with the owner, and you may even get to chip off a few dollars of the original cost.

Make sure to check different websites and car dealerships to find and compare prices so that you can get the one that best suits your budget. Some models are very popular, so the options are greater and you may have even more room to negotiate.

Cheaper car insurance. Your car insurance rate can drop significantly when you switch from a new car to a used one. Since used vehicles are worth less money overall, companies can offer lower rates with comprehensive and collision coverage.

And, if you go for a very inexpensive used car, it may be worth it to drop certain coverage altogether and pay for repairs yourself.

Higher resale value. Cars depreciate the fastest in the beginning of their lifespan, usually within the first few years after production. A new vehicle can drop up to 20% of its value in just the first year, 11% just on the drive home from the dealership! 

Buying a used car means that the original owner(s) took the initial hit of depreciation, leaving you with a higher resale value. This allows you to get more money if you choose to sell the car in.