Why Are Used Cars More Valuable Than New Cars?

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Why Are Used Cars More Valuable Than New Cars?

The feeling of purchasing a new car is unique. It is a brand new vehicle used by no other person before and only for the buyer's use.

For the budget-conscious car buyer in Jacksonville, a second-hand car can be just as thrilling. This is because while used cars do have a few miles on them, they are considered to have a higher value than new cars in Jacksonville. It is also less of a hassle to purchase. The buyer looks up used cars for sale in Jacksonville, and they can find classic and modern vehicles at different price ranges.

Here are five more reasons why used cars are considered more valuable.

1.    Lesser depreciation

Depreciation impacts the value of all vehicles. However, the depreciation rate of used automobiles is significantly slower than that of new cars. In most situations, the car's price has already depreciated considerably. By the time it is repurchased, it has exited the sharpest phase of the depreciation curve.

Moreover, automobiles depreciate far less after the first three years. So buying a used car and retaining it for a while will still allow the buyer to sell it at a competitive price.

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2.    Sustainable

Florida has often fared well in terms of car sales. To put into perspective, in 2018, the state, including the county of Jacksonville, saw massive car sales putting them second in all of the US, behind only California, with 511,500 cars. This does not look good in terms of environmental impact.

Used automobiles are also good for the environment since it prevents the vehicle from ending up in a landfill or scrapyard and contributes to lowering carbon footprint. This is beneficial not just to the ecosystem but also to the economy.

3.    Less pricey insurance

Compared to a new car, the insurance rate for a used vehicle is significantly lower. When purchasing a used car, the buyer may be eligible for a no-claim bonus too, which can help save more money on the vehicle insurance. The insurance premium is often calculated based on the vehicle's depreciation during sale or purchase, resulting in low-cost car insurance for a used car.

4.    Easier to locate spare parts

One of the greatest advantages of buying a used vehicle is that replacement parts are widely available. This makes repairing and maintaining the automobile reasonably easy. This may not be the case with classic cars. However, with the increased availability of approved and certified used automobiles, second-hand cars are becoming more popular than ever, resulting in a higher supply of spare parts.

5.    Cheaper and simpler to upgrade

A new vehicle normally comes with only factory accessories, meaning the customer must pay for every additional accessory. It may add up quickly to cost a lot. When purchasing a used automobile, one might reap the benefit of having pre-installed accessories that the previous owner has already bought and installed into the vehicle, making them cheaper and easier to upgrade.

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It's not uncommon to see fluctuations in used car sales year after year, even under the best circumstances. However, prices have risen steadily since 2020. The average price of a used vehicle had reached a record $21,558 by the end of last summer. Surprised to some, prices have only risen since.

Even though used car prices continue to rise it is still possible to get a great deal. There are many affordable used cars that will suit your budget and needs if you are open to exploring all options. If you are very particular about a make, model or color, you will most likely pay more on the current market.

Endnotes

New cars and old are both extremely advantageous. However, a second-hand car can be a far better investment in some instances. They are less depreciating and far more sustainable, and buyers save a considerable chunk of money on the insurance premium in Jacksonville.

In addition, when the car is bought from dealers who also display used cars for sale in Jacksonville, they can replace spare parts easily. Moreover, these second-hand cars are also easier to upgrade. So, it's best to opt for used vehicles, especially on a budget!