The advantages of buying a used car over a new one are obvious. When you buy used, you will, of course, pay a lower price.
The value of vehicles depreciates over time. People who like to buy the newest models may find this annoying; however, pre-owned car buyers may find it a blessing. Savings can be significant when you buy a used car for sale, even one that is just a few years old.
The older the vehicle, the more likely it will require maintenance and repairs. It will naturally wear out over time. How do you determine a used car’s sweet spot? Is there a suitable age for a used car to buy?
Depreciation Follows a Curve
Consider first that depreciation is not the same for new and old cars. Depreciation of new cars is much higher than that of used cars. It is estimated that new cars lose 9-11% of their value the moment they leave the lot. Most cars lose 20% of their value within a year after they leave the lot. A car’s value will decrease by roughly 15-25% per year for the next five years after that point. However, depreciation still takes place after that, but at a slower rate.
The sweet spot for used cars
This means that if you buy a used car for sale that’s 2-3 years old, you’ll get a nearly brand-new vehicle and don’t have to deal with the depreciation yourself.
For instance, a car that costs $30,000 new can be had for $16,000-$20,000 if you wait 2-3 years to buy it.
Factors affecting depreciation
The depreciation of vehicles varies depending on the model. A typical buyer of a luxury sports vehicle, for instance, always wants the latest model, causing depreciation to be high.
Depreciation of reliable used cars in Eden NC is the slowest. There are several cars with the lowest five-year depreciation on the market today.
Conversely, vehicles that have been recalled or are known to be expensive to repair have extremely high depreciation rates. When buying one of these models, keep in mind that they can be a bargain, but they require ongoing maintenance.
Taking maintenance costs into consideration
In general, modern cars are highly reliable even as they age. For cars that are old, the average annual repair costs are about $350, while for cars that are ten years old, annual repair costs are just under $600. This is because, when a car is old, it is likely to have major problems every three years, while a car that is 10 years old may have problems every 18 to 20 months.
More than a sticker price
There are often advantages to newer models over their older counterparts, which should not be overlooked. For example, the majority of vehicles had side curtain airbags as standard equipment in 2012 as well as electronic stability control for all cars. Many 2012 models had backup cameras. Several other advanced active safety features became available in the 2012 model year. This is a smart place to start if safety is your primary concern in purchasing a used car.
Newer vehicles are often more fuel-efficient, too, so you’ll save money in the long run. In newer model years, you can usually find more gadgets and better stylistic choices.
The right age to purchase a used car is highly subjective and depends on your priorities. You can save a lot of money by buying a used car that is just 2-3 years old and it will be almost like a newly purchased car. If you’re willing to give up some styling and features, an old car will save you even more money and likely cost you less in maintenance. If you want to buy a used car in Eden NC, you can get in touch with Smart Chevrolet. They have a variety of cars to offer and at very affordable costs. So get in touch with them and get the best deals and offers.