Are You Ready to Keep More Money in Your Wallet? Here’s Every Reason to Shop for a Used Vehicle

May 18th, 2022 by

A person is shown sitting in the front seat of a used car in Cincinnati, Ohio.

Do you know the biggest misconception about buying a new vehicle? It’s that you’re getting a better deal than buying used. While that new car smell is enticing, your money doesn’t go very far on a new vehicle. Sales tricks and gimmicks make you think otherwise, but the truth is that you’re losing money regardless of how great the salesperson claims the deal is. What do we mean?

Your search for used cars in Cincinnati, Ohio, proves that you’re already on the road to making a wise financial investment. Ask any financial expert, and they’ll encourage you to buy a used car because the benefits are far greater. For example, you’re paying closer to the vehicle’s actual value, which means keeping more money in your wallet, and who doesn’t want that? Here at McCluskey Chevrolet, we’re excited to show you the many perks of investing in us and one of the many cars, trucks, and SUVs on our pre-owned lot. We’re not here with sales tricks, gimmicks, or high-pressure tactics; instead, we’re here with honesty and transparency. Here’s every reason to shop for a used vehicle!

Reason #1: Depreciation

Cars lose their value the longer they’re on the road, known as depreciation. While this may imply that used cars are worth less, it’s more about perspective and saving money. For example, let’s say that you purchase a new car for $40,000, a price negotiated down from the $48,000 MSRP. After one minute on the road, your new car loses up to 11% of its value, which means you’ve lost $4,400 before parking it in your garage.

This rapid rate of depreciation continues for the next five years. After 12 months, your $40,000 vehicle is worth 20% less, meaning you’ve now lost $8,000 total. By its fifth year on the road, your car is only worth 40% of what you paid or $16,000 on your $40,000 purchase. That’s a significant loss, especially since it means you overpaid for the vehicle despite feeling like you got a great deal.

These numbers are estimates based on current market trends, but how fast your car depreciates is also impacted by several other factors such as mileage, fuel economy, shifting industry trends, condition, and brand reputation. For example, soaring fuel prices make full-size SUVs less popular, while frequent recalls from a major automaker can cause many customers to steer clear of the lineup until things settle down. These can dramatically impact the value of your vehicle.

A person is shown talking to a salesperson over paperwork.

Reason #2: Better Value

Shopping for a used vehicle is a great way to put your money to work. Your $30,000 budget might get you behind the wheel of a base model SUV on the new lot, but you’ll have to make several sacrifices regarding luxury, conveniences, and technology. However, when you take this budget to the used lot, you’ll find that you can typically get behind the wheel of a better-equipped model with newer features, technology, and conveniences at a fraction of the cost.

The better value that a used model offers works in conjunction with depreciation. Investing in a used car, truck, or SUV means paying closer to its actual value since it’s likely experienced the rapid early depreciation that befalls every new vehicle. So instead of paying the new car sticker price, you’re exchanging a few miles on the odometer for a better-equipped model whose features, amenities, and technology make it an incredible value.

Reason #3: More Affordable Insurance Rates

Insurance companies base your rate on several factors like your age, driving history, location, and the vehicle itself. Because of this, customers typically start shopping for a car and then reach out to their insurance company for an estimate on coverage before they begin the purchase process. However, if you’re buying a used vehicle, you’ll find that insurance coverage is typically much more affordable.

When you insure your vehicle, you’re paying for peace of mind and financial security when the unthinkable happens. Your coverage is based on the insurance company’s estimate of how much your vehicle is worth should they have to replace it or repair it. For example, let’s say that your car is totaled in an accident. Since it’s insured, the insurance company evaluates the car’s damage and writes you a check based on its value. So, what does this have to do with shopping for a used vehicle?

New vehicles are more expensive to insure because they’re more valuable and costly to replace. For example, your brand new $50,000 sports car comes with sky-high insurance rates because it’s a sports car and because the insurance company knows its value and what it will take to replace the model. In contrast, your $25,000 used SUV is more affordable to insure since its age and mileage lower its overall value and replacement cost.

Reason #4: Plenty of Choices

The American automotive industry sells over 40 million used cars, trucks, and SUVs each year, surpassing the 17 million new vehicles sold annually. New inventory often looks the same, with dealerships keeping the most popular trims and packages in stock. As a result, the selection of new models tends to be more uniform or cookie-cutter, assuming that most people want the same thing. Fortunately, this isn’t the case when you shop for a used vehicle.

With over 40 million used vehicles cycling through the used market each year, you have a better variety of cars, trucks, and SUVs on the pre-owned lot. This gives you a wider selection of trims, features, and packages. For example, a Silverado with leather seats, towing technology, and the full suite of driver-assist features might be a custom order on the new lot, but it’s readily available on the used lot at a fraction of the price. In other words, you don’t have to settle for less than what you want or wait months for your custom truck to roll off the production line. You can get behind the wheel today and keep more money in your wallet, and who doesn’t want that?

A person is shown holding a car key out the drivers side window after searching 'Used Cars Cincinnati Ohio.'

Reason #5: Confidence in Your Purchase

In the past, buying a used vehicle meant taking a significant risk. Essentially, buyers took a leap of faith that the car was in good working order and didn’t have any hidden issues. Today, that risk is minimal, thanks to dealerships like ours that offer comprehensive vehicle history reports and exceptional warranty coverage.

Companies like Carfax make buying a used vehicle less risky by giving buyers vital information about a model’s ownership, maintenance, and title history. We’ll provide the Carfax report with your purchase, or you can access the report yourself using the model’s vehicle identification number or VIN. The report will show you title issues like flood, fire, salvage designations, maintenance history, ownership history, and accident involvement. With this information, you can have greater confidence in your purchase.

You’ll find that confidence goes even further with extended warranty coverage. Depending on the model’s age and mileage, it may still be covered under the manufacturer’s new vehicle warranty. In many instances, you can extend this coverage with additional warranty plans that cover vital powertrain components that are otherwise costly expenses.

Plenty of Reasons to Shop Used

Have you noticed a theme in our list of reasons to shop for a used vehicle? Every reason involves getting you behind the wheel of a better-equipped model and saving you money. Shopping for a used car, truck, or SUV is a sound financial investment because it does both. In many cases, you’ll find that your money works harder for you on the used lot and gets you in the driver’s seat of the model of your dreams without forcing you to sacrifice or settle for less. Of course, the fact that you get to keep more money in your wallet makes the deal even sweeter!