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Of the 54,000,000 vehicles sold last year in the United States, just below 75% were used. Why is there such a discrepancy between new and used? Here are four reasons why people prefer a pre owned car. Reliability The cars of the 1960s-70s are well known for the large engines, wild styling, and collectible value. Unfortunately, they also broke down a lot. With the added competition from Asian automotive manufacturers in the 1980s, the reliability of vehicles sold in the United States skyrocketed. Today the average age of the 254,000,000 autos on the road in America is over eleven years. This reliability trend can be found in many vehicles from the past twenty-five years. This means that consumers are able to purchase a pre owned car that can be driven reliably for many years. Price and Depreciation The average price of a new vehicle is just over $32,000. The average pre owned car costs less than half of that, at $15,000. One of the reasons there is such a large discrepancy in pricing between the two types of autos is due to the sharp depreciation rates that new models face. On average, the instant a new auto is driven off of the dealer's lot, it loses 10% of its value. Within five years, it is worth roughly 40% of the purchase price. As vehicles grow older, their depreciation rate tends to slow. If you buy a four-year-old model for half of its sticker price, it will maintain a higher relative value for longer than that of a new one. Therefore buying a used auto is not only cheaper on average, but it is a smarter investment due to the slower depreciation rates found in older models. Safety The two most important innovations in automobile safety in the last thirty years are airbags and anti-lock brakes. Initially, these features were only found in high-end luxury models. Today both are mandatory in any car manufactured for sale in the United States. With this widespread implementation, buyers of a pre owned car have a multitude of safe options. Market Those who are in the market for a brand new vehicle can only buy it from an authorized dealer. The beauty of buying a pre owned car is that the market is much bigger. You can buy from private citizens, used vehicle lots, or dealerships. This larger market gives consumers a better chance to compare prices. It also means that due to the competition, prices are more negotiable. In conclusion, no matter what make or model you pick for your next vehicle, you should buy it used. A used automobile offers a lower initial price and better depreciation rates. It can match brand new models in terms of reliability and safety, all while being available from a wider number of markets. When considering preowned cars, Pennsylvania residents visit Sutliff Volkswagen. Learn more at http://www.sutliffvolkswagen.com/searchused.aspx.
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