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5 IMPORTANT FACTORS WHY SECONDHAND CARS ARE PREFERRED BY MOST AMERICANS

5 IMPORTANT FACTORS WHY SECONDHAND CARS ARE PREFERRED BY MOST AMERICANS

According to the International Association of Traffic and Safety Sciences (IATSS), cars are more attractive to people than public transport because of the comfort, convenience, independence, flexibility, speed, reliability, and convenience it offers. Aside from that, owning a car depicts socioeconomic status that is why car purchases are frequently related to the middle and lower class since they comprise most of the populace.

Which do Americans prefer the most: used or brand new cars?

Based on the recent 2020 report of Statista, there is a sudden shift in the vehicle-buying behavior particularly in America. The report further elaborated that most Americans prefer to purchase used cars compared to brand new ones. This is primarily due to the humanitarian global health crisis in which most of the budget goes to buying home essentials rather than luxuries. Comparing the data from the past 10 years with a 5 years interval, the sales on used cars are consistent at the range of 35 to 40 million units while for the brand new cars a fluctuation was observed in the sales. Among the years 2010, 2015, and 2020, 2015 hits the highest record of sold brand new car units, which amounts to 17.5 million, in the U.S. alone. A 3.5 million units decline followed afterward in the year 2020.

The Pros of Purchasing a Used Car

Even if there are a lot of cars that are manufactured on a day-to-day basis, used cars are still the most preferred land transport of the American. Let’s see why.

Cheaper price

            For someone who dreams of owning a car, buying a brand new model will surely make your pockets cry since it is really expensive, especially the one with state-of-the-art features. So, the most economical option you have left is to purchase used cars. In this way, you get to enjoy the low-cost-to-resale ratio.

Lump sum payment

            Most of the used cars on sale can be paid in a single payment method since it is offered at a lower price.

It depreciates less

            Compared to a brand new car, which depreciates by 20% as soon as it steps out from the dealer’s garage, a used car depreciates less with time. If you are the second buyer, you most likely bought it 10 to 70% less of its original price. It was the first buyer that suffered great depreciation.

Lessens carbon footprint

            According to the Applied Materials Division at Argonne National Laboratory, there are about 12 million vehicles that are junked in the U.S. annually. Hence, owning a used car aids in lessening our carbon footprint on the planet, especially those with lower mileage.

Phased out models are popular to car collectors

            Most used cars are phased out models. If you have found a vintage one, you can resell it to car collectors which pays a good amount of money.

Low Insurance Cost

            Used cars are cheaper to insure because they have lost their value upon the prior years of usage.

Takeaway

            If you are looking for used cars Fresno, there are a lot of good deals available in California.

Published by Bob Dancer