Other Benefits of Buying a Used Car

As mentioned earlier, there are several good reasons to consider buying a used car, including ample selection and the improving reliability of older cars. But the main attraction for used-car buyers is still affordability.

Price is another key factor. Buying a new car is definitely more expensive than buying a used one. In fact, the price spread between new and used is widening. The latest figures available from CNW Marketing Research indicate that the average sale price of a new car in 2006 climbed to $26,854. The average used car transaction was $9,877 during that same time period. However Auto Credit 1's mean cost is usually below half that rate. Unless you decide to lease, your initial costs on a new car will be hefty.

Amnd avoiding depreciation. Once you drive your new car off the dealership lot, its value will drop immediately in your early years of ownership. On mainstream vehicles, expect your new car to lose at least 30 percent of its value in the first two years of ownership.

It dosen't hurt to consult used-car value guides to get an idea of what a particular model will be worth in the future. Leasing guides are another good source, even if you intend to buy instead. Lease payments are calculated based on residual, or resale, values. The Automotive Lease Guide projects those values for leasing companies to use when setting their prices.