Why Buying a Pre-Owned Car is a Good Investment!
Buying a new car today is a major investment. First and foremost, you must consider the actual cost of the vehicle, plus taking the down payment and monthly payments into account. Next, there’s your insurance to think about, followed by any little essentials the car may need along the way, such as security features, in-car gadgets, and more.
The latest cars from leading manufacturers tend to boast high-tech features that claim to enhance your entire driving experience, but increase the overall price up significantly. While some of us may think that only the flashiest, sleekest, most powerful new cars are worth investing in, this isn’t viable for countless Americans today. Sadly, money worries are a very real part of everyday living, making the entire process of buying a new car more of a challenge. That’s one of the main reasons pre-owned cars have become increasingly popular in recent years, with more Americans buying them than ever. Let’s look at why you should join them.
You Can Save More Money Than You May Realize
It’s an obvious point, but a vital one nonetheless; pre-owned cars are available at much lower rates than brand new models. The average 2017 new-car costs are around $35,000, while the average for used cars is about $16,000. There’s a clear difference here, with many families on median incomes unable to afford the higher prices of most new cars. Taking out loans for cars with a bigger price tag will bring debts, leading to further financial strain down the line. Of course, this first depends on whether dealerships or banks will even grant you financial approval for the purchase in the first place.
Reduced Depreciation = Better Value
One of the priciest elements of buying a new car is the depreciation. It’s a difficult factor to face, but brand-new cars depreciate with astonishing speed, starting as soon as you drive away from the dealership for the first time. This may not be of much concern if you plan to keep the vehicle for many years vehicle, but if you are hoping to trade it in within a few years after buying it for the latest model, think carefully.
Don’t be fooled into thinking depreciation slows down quite a bit after the first year. New cars lose value at an average rate of 20-25 percent the first year, and will have lost an average of 60 percent or more of its original value by the fifth year. This is far less of an issue with pre-owned cars; the depreciation will have affected the original owner and making it a much more affordable purchase for the next owner. Depreciation rates tend to slow as a car ages, and any loss of value in your used car will make far less of an impact than with a new model.
Enjoy Cheaper Insurance
Insurance is one of the more expensive costs of owning a car. When you buy a brand-new vehicle, the insurance costs can be far more expensive than you imagined, as insurance rates are based on a vehicle’s value. Investing in a top of the line car with various high-tech features can leave you facing huge monthly insurance payments, whereas opting for a pre-owned car equates to a more cost-effective deal. Insurance payments should always be a factor in your thought process before buying a car. You must look at all your current living expenses and consider how those new vehicle costs will affect your financial situation. Can you afford to pay double, triple, or beyond what you would for a pre-owned car? Will you have to drop other expenditures to handle the higher payments?
A Bigger Range of Models
Dealerships specializing in brand new cars may only carry models with the latest designs and technology. Besides the high prices, the newer styles and features might not appeal to you. And many come direct from the factory with expensive options already installed that you might never use. Perhaps you prefer a more basic style of vehicle or don’t need or want to pay for features that are not important to you. Used car dealerships, on the other hand, tend to have much more variety of vehicles in their inventory, including many different styles, features, mileage and age. This gives you the opportunity to find and affordable vehicle that matches your needs and preferences.
More Flexible Financing
Securing financing for your new car can be a headache (to say the least), especially if your credit rating is not too good. Your credit score determines how much of a risk you appear to banks and lenders, with those in the Bad and Poor category being the most unlikely to receive the loan they need. And many with a Fair rating often have difficulty securing a new-car loan without putting up a very large down payment because of the high amount that would have to be financed. In general, financing for a used car tends to be more flexible and available, primarily because of the lower amounts to be financed.
Why Buy From G&E Motors
At G&E Motors, we offer financing for all credit scores. We know securing auto financing can be a real struggle if you have a low credit score. Many used vehicle dealerships and banks will refuse to approve auto loans if you have a lower credit rating, which can leave you feeling restricted and frustrated. We all need a car or truck in today’s fast-paced world. Whether it’s your daily ride to and from work, your main way to transport your family, or you use it for work, trying to get by without a vehicle is far from ideal. We offer the best deals, with Guaranteed Loan Approval, regardless of your credit rating
Check out our inventory of used cars and used trucks to find unbeatable deals, with the biggest car and truck manufacturers and most competitive prices. Every G&E vehicle has been through a 115-pointy quality inspection, comes with a Carfax report, and a 30-day, 1000-mile warranty. If you want to know more, just give us a call at 267-560-5519 or drop in and see us at 451 E. Lincoln Hwy, Langhorne, PA. Our team is always available and happy to help find the right car or truck for you.