Shortages in electronic parts and other manufacturing parts have pushed up the prices of cars, both in the new and used car markets. However, it is also a time when a car purchase negotiation can be quick as used cars are being sold quickly. This upsurge of the market also means you need to move rapidly on used cars in San Diego County, especially when you see a vehicle that you like. There are benefits to buying a used car in San Diego county right now.
According to the Bureau of Labor Statistics used car prices are about 20% higher than they were in March of 2020. This rise is because new car buyers turn to the used car market due to slow production caused by a lack of semiconductors. Even car rental agencies are buying used cars to bring their fleets up to the needed demand.
Even so, many people shy away from the used car market. Used cars often have a stigma that is no longer true attached to them. You know, people often say, “You are paying for a car that has problems.” Cars have come a long way, and most newer models adhere to certain quality standards, so this saying doesn’t come into play any longer.
Whether new or old, cars need regular maintenance like new tires, rotations, brake jobs, and oil changes. The thing about recent models is that these cars can be driven further between maintenance visits.
This characteristic of used cars may be another reason why pre-owned vehicles are in higher demand and come slightly higher than before. However, if you read on, you’ll find a few benefits to buying a used car over a new one in the San Diego area.
Even with a 20% hike, buying a used car saves you money. Used car prices are lower than prices for new vehicles, which means you can pay off a used car faster than a new one if you decide to finance. So if you pay $10,000 for a car instead of $20,000 for a new vehicle, you can save a ton of money.
Depreciation Has Already Occured
A new car depreciates quickly and drops as much as 11% from when the new owner drives it off the lot. The vehicle continues to decline over the next few months.
On the other hand, when you buy a used car, most of the depreciation has already happened, so you have more resale value when you sell the vehicle.
Certified Cars Are Great Options
Look for a certified pre-owned car in San Diego. This gives you an inspected car that hasn’t had any major damage before. Certified vehicles are inspected, refitted, and certified by the manufacturer or the dealership. They affirm your used vehicle is a good car.
You May Get A Warranty
Some used cars in San Diego are still under warranty, or you can get a warranty option from the manufacturer. You can purchase an additional guarantee for 100,000 miles on the recent year used vehicles.
Options like roof racks, hitches, rust-proof finishes, sound systems do not affect the price of a used car. The car usually costs the same whether it has custom options or not.
A Range of Choices
Although you can’t get options like specific colors, trims, seat types like you can on a new car, you can shop for different models and years, including those no longer made.
Lower Insurance Costs
If you have an accident in a new car, the insurance company pays the car’s value at the time of the accident. The problem is that this usually leaves you with a gap you need to pay out of pocket.
Insurance for used vehicles is usually for the current value of the car. So if you are even in an accident, you don’t lose too much money.
Almost 25% of the carbon dioxide produced by a car in its entire life cycle happens when it is produced and shipped. By buying a used car, you help the environment and prevent any more carbon dioxide output.
Lower Registration Fees
In San Diego, the annual registration is based on the car’s value and its model. So an older car doesn’t pay as much in registration fees as a new car. Buying a vehicle that is at least three years old can save you $1,000 to $2,000 in tax and registration fees.
Donate to A Good Cause
Many nonprofit organizations sell used vehicles. These cars are donated to the organization, and they sell them to make money for their organization. When you buy from one of these non-profit organizations, you help them with their cause.
As you can see, there are many benefits to buying a used car. Generally, these cars cost less, albeit they are currently higher than normally priced. Even so, a good used car may be a better option for your San Diego lifestyle than a new car purchase. Search our dealer inventory today and save!