What is a benefit of buying used cars?

Buying used cars presents significant financial advantages, notably the avoidance of rapid depreciation. When a new car is driven off the lot, it can lose a significant portion of its value—often around 20% in the first year alone. This rapid depreciation affects new car owners the most, as they face a steep decline in resale value over a very short period. In contrast, used cars have already experienced this initial depreciation, allowing buyers to pay a price that is much closer to the actual value of the car, thus securing a better financial deal.

This understanding helps buyers make informed decisions about their purchases. While some may argue that higher resale values, better financing options, or more features are appealing factors, these aspects do not hold the same level of financial impact as the depreciation factor does. Avoiding rapid depreciation not only protects the buyer's initial investment but also provides peace of mind when considering the total cost of ownership over time.