Financial Benefits of Buying a Used Car

Chris Orsaris serves as the principal dealer of the Bronx, New York-based Victory Auto Group. Drawing on more than 27 years of experience in the automotive industry, Chris Orsaris began his career as a car salesman trading in used automobiles.

Used cars offer a number of financial benefits to the buyer. A used model tends to be significantly less expensive than a comparable new vehicle, which means that the buyer can either save money or upgrade to a higher-end car.

Used cars also retain more of their value for a longer period of time. While all cars depreciate with time and mileage, a new car can lose approximately 20 percent in value the moment its owner drives it off the lot. The majority of new cars will go on to lose an additional 10 to 20 percent more in the first year, whereas the rate of depreciation slows significantly after the car’s second year of ownership.

Finally, because insurance and registration fees typically depend on a car’s value, used cars tend to cost the owner less in both cases. This is particularly relevant in states where registration fees also depend on car model year, as owners in these states can save approximately $1,000 by registering a car that is 3 to 5 years old.