For most people, their idea of a dream car is not one of the used variety. It’s new, luxurious, and even flashy. However, while used cars can get a bad rap sometimes, the right kind may offer a lot that you could appreciate. Buying a used car is an investment that could yield you positive returns that you never even thought about gaining. Why not take the chance on a used car? After all, there are several benefits to be had from buying a used car. Here you’ll learn more about those specific benefits.

Cost Less Than a Brand New Car

It’s a no-brainer that, in general, a used car costs less than a brand new one. The cost of a new car is incredibly high, and while some used cars can be pricey, you stand a better chance of finding a car that’s more affordable by sticking with the latter. According to Consumer Report, the average cost of a brand new car is around $40, 000, while the average cost of a used car is just over $25, 000. Although the cost of used cars has surged in recent years, they are typically more affordable than new cars.

Slower Rate of Depreciation

It’s said time and time again that once you buy a car and drive it off the lot, it loses 15-20% of its value. Think about buying a new car for $30,000 and losing $6,000 off its value as soon as you drive off. That’s tough and many would say unfair. You have even put any wear and tear on it as yet or cover any considerable mileage. What will its value be at the end of the year if you bought it in March? It would lose at least another 10%. A three-year-old used car, on the other hand, would depreciate at a lower rate. Imagine buying the car for $20, 000 and if you decide to sell it three years down the road, you could very well get $15,000 for it. That’s only a loss of $5,000. You lose more and quicker buying a brand new car.

Insurance Rate Lower

One of the big benefits of buying a used car is that the insurance rate will cost you less than if you were to buy a new car. Still, several factors will help to decide your specific insurance rate, including driving history, make and model of the car, desired level of coverage, and even the insurance company you use. In general, used cars save drivers money when it comes to insurance, For instance, All State’s new vehicle 6-month premium insurance plan is a little over $1,200 compared to $929 for a used vehicle insured under the same 6-months premium insurance plan. If insurance cost is a concern of yours, a used car can allow you to keep some cash in your wallet.

Many Have Warranty Coverage

You cannot overlook the importance of a warranty when buying a used car.  Most used cars will have factory warranty coverage unless it has expired. Most used cars, certified pre-owned vehicles included, are typically subjected to thorough inspection and are covered by an extended warranty when they land on the lot for sale. The warranty should be included in the buyer’s guide presented by a used car dealer, so be sure to spend some time and read through the guide.

You don’t have to hesitate when trying to decide if you want to buy a used car.  The benefits that come with buying a used car will save you money in the long run. Before you buy a used car, do your homework and ensure that the dealer is legitimate and has a solid reputation.