A Short Case Study On The Benefits Of Buying Used Vehicles

used vehicle

used vehicleMany people believe there is an inherent risk in buying used vehicles. This isn’t the case. There are many used vehicles that are barely used at all and come with a certified pre-owned warranty. The next time you are in need of a car or truck, it might be in your financial best interests to purchase a used vehicle. Here is one example that really drives the point home.

The 2017 Ford Focus S Sedan

This compact sedan came standard with an automatic transmission, front wheel drive, a 159 horsepower four-cylinder engine, the capacity for 26/38 miles per gallon (city/ highway respectively), and all of the features you would expect to find in a modern car. For all of this, you would pay a reasonable $17,870 when it was new.

Now, just a year later, the same exact car with only 3,822 miles on the odometer could be yours for $14,995. That is a total savings of almost $3,000!

For the previous owner, the story looks bleak. In fact, for every mile they drove the car, it lost a little over 75 cents in value. Now, ask yourself: Would a brand new car be worth paying an extra $3,000 that you know very well could be all gone within a year of owning the car?

Why Used Cars Are Popular

The market for new cars might be thriving, but used cars are also a huge industry. Between dealership and private party sales, almost 40 million used cars change hands on a yearly basis. The reason for the popularity of the second-hand market is actually quite simple.

Price can drive demand almost as much as demand can drive price. In the used vehicle market, people want less expensive cars, so less expensive cars become available. Likewise, less expensive cars become available, people take notice, and people want more cheap car options. The window is then opened to certified pre-owned vehicles and ford dealerships to offer higher quality used cars for less money.

If you are interested in owning a car for less than it originally cost while facing almost no negatives, perhaps you should consider buying a used car like the 2017 Ford Focus S. If you buy new, you stand to lose $3,000 or more in depreciation alone. Buying used can save you a lot of money, even in the short term.

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