The last few years have seen a clear increase in the purchase of used vehicles compared to new ones.
L’Ami Auto Crédit, which has been specializing in low-rate car loans and 3rd chance car financing for many years, has also noticed this trend and discusses it with us here. We tell you everything about the advantages of buying a used car instead of spending more money on a new one.
Why Buy a Used Vehicle in 2021?
1. Used Vehicles in Time of Pandemic
Since March 2020, Quebec has been plunged into a global pandemic and it became easier to get a used vehicle than a new one. Indeed, many car manufacturers have been struggling to finalize the assembly of their new vehicles due to a lack of parts from foreign countries.
Meanwhile, consumers were turning to the purchase of used vehicles, much more abundant on the market, in spite of an increase in prices for these vehicles. In short, used vehicles are becoming a common currency between consumers and sellers. In 2021, consumers are increasingly opting to buy used vehicles, proving that there are clear advantages for the consumer who knows how to sniff out a good deal.
2. Net Worth of a Used Vehicle vs. a New Vehicle
New vehicles typically depreciate by 20% in value the first time they are used. For example, on a $30,000 car, the very first trip in the new vehicle will cost $6,000. It had better be a really nice tour and a worthwhile adventure.
Second, new vehicles typically lose 10% of their value in the first year. If you do the math, a new vehicle will lose 30% of its value after the first year, which is about a third of the price you paid. In this scenario, we’re talking about $9,000!
It is possible to avoid this significant loss of value by buying a used car instead, since it already went through the major depreciation stage. Purchasing a car that is at least one year old will allow you to own, drive, and finally sell this vehicle at a good price.
3. More Advantageous Insurance for Used Vehicles
It should be noted that car insurance is much more affordable for used vehicles than for new ones. In fact, the “all risk” coverage is not necessary for a used car, but it is a must for a new vehicle.
Thus, take the necessary time to shop around for insurance, but know that it will always cost you less if you opt for a used vehicle. This advantage adds up, especially if you have to pay for the purchase of the vehicle, the insurance and its regular maintenance. If you can save in one or more of these categories, you win.
4. More Luxury for Less Money
When buying a new vehicle, there is often a significant price gap between the top-of-the-line and the base version. However, this price difference is not as significant in the used car market. This makes it easier for drivers to get a better-equipped model at a fraction of the price of the new vehicle.
Take advantage of opportunities to get into a used vehicle with more options and better suited to match your current and future needs.
5. Used Vehicles with CARFAX Report
Nowadays, used cars are subject to a thorough inspection if they are sold by an authorized dealer, such as those found at L’Ami Auto Junior. A certified vehicle with a CARFAX report is always provided to you. This report contains valuable information on the history of the vehicle, its previous owners, and its current condition.
In short, you now have peace of mind when you decide to purchase a CARFAX certified used vehicle. Future owners of used vehicles can now know everything before driving off in their new vehicle.
L’Ami Auto Crédit: Quality All Around
Don’t wait any longer, trust the people at Ami Auto Crédit for all your car financing needs. A dedicated team is waiting for you and will advise you for the purchase of your next used vehicle. L’Ami Auto Crédit is there for you.