Out With the New and in With the Used: 3 Things to Consider Before Buying Your Next Vehicle

How much are you willing to pay for that new car smell? Is it worth spending thousands of dollars more than the vehicle’s actual value? Many people are set on buying a new car, truck, or SUV because they believe it’s better than shopping off the used car lot. However, that’s not the case, and as your leading used car dealership, it’s our responsibility to explain why. Here are three key points to remember as you start shopping for your next vehicle!

#1 You’re Overpaying for That New Vehicle Even After Negotiations

Today, the demand for vehicles far outnumbers the available supply, which drives the price of new models higher than ever. Since transportation is vital to our lives, we’re often willing to pay more for the perfect car, truck, or SUV that meets our driving needs. But how much more are you willing and ready to pay?

Kelley Blue Book reports that new car prices are on a sky-high trajectory, with the average price rising only $1,800 in 2019 before increasing to $3,301 in 2020. New car prices doubled from 2020 to 2021 with an average increase of $6,220. Now, let’s put this increase in a long-term perspective.

You purchase a base model 2021 midsize SUV for $42,000, a price you negotiated down from $46,000. Last year, the same model started at $40,000, which is already a painful reality that hurts your wallet. Once you drive your new SUV off the lot, it immediately starts depreciating; you can expect up to an 11% loss in value before you get home. That means you lost $4,620 before the ink was dry on the paperwork. Moreover, your SUV continues to depreciate over the next five years, reducing its value by 60% in 2026 and making it worth only $16,800.

Now, let’s flip the script. Like new vehicles, used cars are in high demand and short supply. However, even with a slight price increase, used cars are still a better value. Why? Your $42,000 budget for a vehicle will go further on the used lot and get you behind the wheel of a top-tier trim with much of the same technology and features as the newest model. What’s the catch? You’ll have to exchange that new car smell for a few miles on the odometer.

Advancements in the automotive industry prove that vehicles can log hundreds of thousands of miles with ease, giving you another reason to shop the used lot with confidence. More importantly, you’re paying closer to the actual value of the used car, truck, or SUV. Why is this the case? By the time you purchase a used vehicle, it’s already experienced that early loss in value. The new owner took the most significant loss by overpaying on the new lot, so you get a better-equipped vehicle for far less.

#2 Warranty Coverage Can Be Just as Good on a Used Model

Beyond the lure of that new car smell, many drivers believe that buying a new vehicle is a safer long-term investment because of the warranty that comes with every new model. This factory-backed coverage engineers confidence in your purchase because it shows the manufacturer has usually got your back when vital components like the engine or transmission break. With a warranty, these repairs are significantly less costly.

One of the biggest misconceptions about the used car lot is that none of the models come with a warranty or factory-backed guarantee. The truth is that a used vehicle can still be under warranty depending on its age and the manufacturer’s warranty coverage. For example, most basic limited warranties cover the vehicle for three years or 36,000 miles, which means a 2019 model with only 25,000 miles on the odometer is likely still covered.

Dealerships like ours give you even more reasons to shop our used inventory with extended service contracts that cover your used vehicle after its new vehicle warranty expires. This contract covers your vehicle’s vital components and offers an array of benefits like 24-hour roadside assistance, road hazard tire protection, and trip interruption protection. Along with greater peace of mind, our extended service contract also locks in your deductible and protects you from expensive repairs.

#3 High-Quality Standards Aren’t Solely for New Models

Shopping for a new vehicle means buying a car, truck, or SUV that’s guaranteed to come without any issues, right? If you’ve ever heard of someone buying a lemon, you know this isn’t the case. Even when a new vehicle rolls off the production line, there’s a chance that a component or several components may fail. Most states recognize these significant or frequent failures as “lemons,” which usually requires the automaker to exchange the model or refund your purchase.

Our point is that there’s always a risk when you buy a vehicle. However, we work to mitigate that risk by holding every model in our new and used inventory to higher quality standards. These standards are especially significant on our used lot. We thoroughly inspect every model to ensure its operability and determine a fair purchase price based on its condition and features. So by the time the model reaches our inventory, you can rest easy knowing that it’s been thoroughly vetted from bumper to bumper.

You’ll find even higher quality standards when you shop for a certified pre-owned model. For a vehicle to earn its certified badge, it must meet certain requirements established by the manufacturer. For example, every certified pre-owned Jeep, Chrysler, Dodge, Fiat, and Ram must meet specific age and mileage requirements and pass a comprehensive 125-point inspection and reconditioning process. During the inspection, certified technicians go over every inch of the vehicle and make the necessary repairs using authentic Mopar parts.

Along with these exceptional quality standards, certified pre-owned vehicles also come with extensive warranty coverage designed to give you greater confidence in your purchase and peace of mind on the road. For example, every certified pre-owned Jeep, Chrysler, Dodge, Fiat, and Ram comes with a 7-year or 100,000-mile powertrain limited warranty and a 3-month or 3,000-mile maximum care warranty. You can also complement this coverage with certified upgrade plans, giving you longer and more expansive coverage on your certified pre-owned model.

More Bang for Your Buck

Who doesn’t love saving money? While you might be lured by that new car smell and its cutting-edge features, we’re happy to burst your bubble and prove that the new car sticker price doesn’t add up to what you’re getting even after negotiating a lower price. The truth is, you can get a better-equipped model and pay far less by simply shopping off the used lot.

Dealerships like ours are excited to show you the many benefits of buying a used car, truck, or SUV. The stigma that once came with purchasing a used vehicle is long gone as automakers and dealerships alike sweeten the deal with extended warranty coverage, affordable pricing, and higher quality standards. The risk of buying a used car is even mitigated thanks to vehicle history reports and companies like CarFax that give you a better idea of what you’re buying before signing on the dotted line. Fortunately, with all this, buying a used car is a far cry from decades ago when all you could do was look under the hood and hope for the best.