Why Buy Used?
If you pay a visit to Federico Chrysler Dodge Jeep Ram in Wood River, IL, you’ll be dazzled by our large inventory of new SUVs, crossovers, sedans, trucks, and minivans. You may also notice our extensive selection of pre-owned vehicles. While owning a new vehicle is what you may have set your heart on, buying a used one gives you several advantages.
The biggest draw of a used car is its lower price, which can save you thousands. You can get the same model and trim level by spending less money as long as it is a few years old. If you stick to your original price but go for a pre-owned car, you may be able to get a better vehicle with a higher trim level and with more features. Some of the high prices associated with new cars have to do with hidden fees like shipping costs or dealer prep, which are non-existent on used versions.
Naturally, the lower price incurs a lower sales tax, which leaves you with more money in your pocket and grants you lower monthly installments that you can pay off sooner. The result is a less total expense, even on a multi-year loan. Your financing is less likely to be underwater, upside-down, or have negative equity. This refers to you owing more money on your loan than the vehicle is worth.
Lower Insurance Premiums and Registration
Because the value of your car is what insurance companies use primarily to determine your rates, a cheaper car will have lower insurance premiums. If your vehicle is old enough and inexpensive enough, you could possibly forgo collision and comprehensive coverage, which lowers your premium even more since you’re only paying for liability insurance. In many states, you can also save on registration fees with used cars. But not in Illinois, where fees do not go down with age.
Depreciation refers to your vehicle losing its value every year. Cars depreciate as soon as you drive them off the lot. Up to 40 percent of value can disappear in the first 12 months of ownership. If you’re willing to buy a used vehicle that is at least a year old, it’s the previous owner that suffers the bulk of depreciation. You will have to deal with less loss of value.
You cannot custom-order a used car like you can a new one, which lets you specify everything from exterior color to interior amenities. Although generally, most buyers do take a new model that is already on the lot, which minimizes their choices.
But used cars can give you a wider variety of models and styles to choose from because they can include trim levels or options that are no longer available in newer versions.
You have no idea what to expect from a new car in terms of problems or reliability because it hasn’t had time to develop a track record. However, it’s fairly easy to determine the history of a used car by getting a report from websites like CarFax.com, which reveals the vehicle’s title history, maintenance records, number of owners, and any repairs or collisions.
Over time, a specific make and model shows patterns of reliability, wear, and maintenance, which then become documented by the media. You will then know what problems to expect in advance from a used car by studying rankings and reviews. This research helps you decide whether you want to deal with certain issues when buying a particular make and model or avoid them by taking a pass on the car.
One advantage of a new car may be its warranty. If anything goes wrong, you can take your vehicle in for a free repair. Some vehicles even have free maintenance and roadside assistance for a set period of time or mileage.
Keep in mind that many of these benefits extend for several years. For example, the Basic Limited Warranty from Chrysler lasts for three years or 36,000 miles with Roadside Assistance for five years of 60,000 miles. A new vehicle from Jeep gets you 36 months of free scheduled maintenance and 24/7 support. These warranties are transferable. If your used vehicle is younger than the warranty period, the benefits will extend to your ownership.