Many customers who are looking to purchase an additional vehicle may consider purchasing a used car over a brand new one. Buying a new car may seem enticing; with all of the available options and brand new features and interior, but all of those benefits seem less shiny when the price tag becomes a reality. Customers can keep more money in their pockets by purchasing used cars in New Jersey or elsewhere.
Used vs. Pre-Owned vs. Certified Pre-Owned
Before entering the used car market, it’s important to understand the differences in terms that are applied to used vehicles. First, “used” and “pre-owned” are essentially the same thing. It implies the vehicle has had one or more previous owners. These cars are sold at small, independent shops or at dealerships.
Certified pre-owned, however, means something different. It’s most often used by dealerships to describe a collection of vehicles in their inventory that have been inspected and certified by a qualified authority. This means that technicians at the dealership do a thorough multi-point investigation into every component of the car. Individual inspections vary among vehicle manufacturers, but in general, they’ll inspect:
- Engine Components
- Other mechanical components, such as the brakes, axles, exhaust
- Electrical (wiring, the battery, etc)
- Interior to make sure features operate correctly
After giving the vehicle a thorough once-over, they’ll assess the vehicle’s overall value and come up with a price to sell it for that makes sense for how much it’s truly worth as well as ensuring the dealership can make a bit of a profit from selling it. Some certified pre-owned programs include warranty benefits as well or pack other perks such as roadside assistance.
What Are Some Other Benefits of Buying Used? â€‹
The unfortunate thing about new cars is they’ll lose up to 20 percent of their value immediately, and that number grows to a 30 percent loss after the first year. Used cars in New Jersey depreciate as well, just not as rapidly. Consider this scenario: a new car is purchased for $30,000, and then it’s sold three years later for $15,000. In this case, it’s depreciated $15,000. Alternatively, a used car is purchased for $15,000, then it’s sold three years later for $10,000. The depreciation for this vehicle is $5,000. Because the used car was worth less from the outset, it depreciates less severely.
Cars last much longer now than they used to, and can go much longer between maintenance appointments than used cars of the past. While oil changes, tire rotations and brake service are routine things that every car needs, today’s used cars can travel more miles between services.
If you’re browsing through used cars in New Jersey, you’re bound to find some great deals from the inventories of different dealerships, and you’ll enjoy the benefits of financial savings, longevity and minimal depreciation.