Buying your first car is one of the most exciting and memorable experiences, but also one of the most stressful.
Due to more public transportation, teleworking options, and a higher costs of living, many millennials delay their first car purchase. When they do buy, however, most of them do not expect to be driving this year’s newest model. Deloitte’s annual survey of young people’s car preferences, 69 percent of Millennials expect to eventually buy a used car. Despite the overall decline in car purchasing from millennials, over half of purchasers (54%) bought a used vehicle. Though used cars may lack voice activated navigation or powered seats, they can be an affordable and reliable option for millennials.
One of the most important advantages of buying a used car is the monetary savings. Though zero down leases could be appealing, a used car will likely last you much longer than the standard 24 or 26 months. Millennials are often saddled with expenses such as student debt and city-living rent payments, the possibility of having a paid for car in only a few years is a huge benefit to recent graduates.
Purchasing a used car can make for a more trustworthy investment. A used car will have a significantly lower rate of deprecation, as opposed to a new vehicle. Once you drive away in a new car, its value drops the second it leaves the dealership lot. New vehicles can lose a tremendous 30% of their value in their first two years of ownership. Used cars, on the other hand, will have much more practical value, and, as a result, its overall value will not decrease as immediately or as steadily.
An additional advantage of purchasing a used vehicle is the variety of certification programs and warranties that dealerships can offer potential buyers. Several used vehicles that have lower mileage are still covered by the manufacturer’s warranty. However, if a warranty is not included with the purchase of your vehicle, most dealerships offer the option to purchase a third party extended warranty. If you do purchase a warranty, an exclusion warranty, meaning that everything except the listed will be covered, is typically a more reliable option should you need to file a claim.
Used cars can offer many advantages, particularly to a younger generation. With a lower rate of depreciation and a lower up front cost, many millennials are opting out of leases or new car financing. If you are in the used car market, stop into Patrick Subaru, a Subaru Dealer in Massachusetts with over 100 used vehicles in stock.