The Benefits of Buying From Used Car Dealerships

New or used is the decision many people have to make when shopping for a replacement vehicle. A used car costs less, but it brings a degree of uncertainty due to its prior history. However, it is generally better to buy used rather than new. Let’s look at the benefits of buying from used car dealerships.

used car dealerships
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A Better Value

Let’s be honest. A well-maintained car can last 10 to 15 years. In contrast, many people replace their cars every one to three years, because they think a new car is better for their image or will simply perform better. Yet the vehicle depreciates the most in the first year or two of ownership. (Roughly 20% the first year, 10 percent a year after that.) This is true even if they’ve hardly driven the car. This is why gently used cars have a far better value than new cars. Someone else has paid for the depreciation, and you still get years of life out of the car.


Like-new and well maintained used cars as safe and dependable as a new car. In fact, a brand new model of vehicle is actually riskier than a one or two year old broken-in model. For example, think of the CVT transmission problems and electrical faults that have been found in many cars after they’ve been off the assembly line for a while. With used cars, you can research the reliability ratings of the car in addition to performance metrics. You aren’t buying something with the need to sign up for recall notices just in case. Or you can buy the car you want, after you’ve verified that it had all the manufacturer recall issues resolved.

The Overall Cost Savings

Buying a car at a used car dealership will save you money on the purchase of your next vehicle. However, you’ll save money in other ways, too. For example, your car insurance premiums are based on the repair and replacement costs of the car. A used car is cheaper to replace than a new car, and there is rarely a need for a “gap” policy to pay the outstanding car loan balance if the car is totaled. The used car is cheaper to repair, too, since there are junked and disassembled versions of the car out there. This creates a steady source of cheap replacement parts instead of having to go back to the manufacturer for the piece parts. Furthermore, used cars generally have cheaper registration fees. This is still a bargain after you take the cost of having the used car inspected by a good mechanic.

Another point in favor of used cars is the fact that you’ll generally pay less in interest. For example, you’ll eliminate the cost of interest on the car purchase if you can pay cash. Few of us have the money to buy a 30,000 dollar car outright, but many can scrape together the money for a 5-10,000 car. If there is a car loan, it is a smaller payment. This is easier to pay down and eliminate, freeing up cash that can be used to pay down other debts.

Jasper has been an enthusiast of the automotive and IT industries since the age of 16. He independently writes on the auto industry's recent happenings.