Why Are More People Buying Used Cars?

Dealerships across the country have taken notice of a big change in car-buying behavior that seems to transcend both standard and luxury automotive brands. These retailers have found that more shoppers are gravitating to used cars now more than ever before, so we did a little digging to figure out what is contributing to this new trend.

The Ed Napleton Automotive Group currently has an impressive 45 stores across eight different states that feature a variety of different automakers. Some of these dealerships even have multiple brands in a single location. For example, Napleton has a hub in Indianapolis that carries Hyundai, Genesis, Maserati, FIAT, and Alfa Romeo.

Over the past couple of years, the privately-owned automotive group has caught onto the nationwide trend of shoppers favoring used cars over new models. This is a reality for brands like Honda just as it remains true for luxury manufacturers like BMW. Sales figures from the Ed Napleton Automotive Group’s network of dealerships within the past two years match this theory, so we are left to wonder…

Why are more people buying used cars?

After doing some research across the Ed Napleton Automotive Group’s dealerships, we’ve found that car-buyers are more interested in used and certified pre-owned models for the following reasons. Keep in mind that the following list is true for both standard and luxury automakers.

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More Affordable Than New Cars

The most glaringly obvious reason that people choose to buy a used car is that the sticker price is substantially less expensive than new models. In fact, if you compile the average cost of ownership, used-car buyers end up paying nearly 50 percent less than new-car buyers once you factor in all of the associated costs the come with car ownership.

Less Depreciation

One of the biggest reasons new-car buyers end up paying nearly twice as much as used-car buyers comes in the form of the “D-word.” We’re talking about depreciation.

Regardless if you buy a car new or used, that asset starts depreciating the moment you drive it off the dealership lot. However, new cars depreciate at a much quicker rate since they were sold as the brand-new model year. That model ceased being the new thing once it had been taken home, and therefore loses a lot of its resale value.

Buying a used car means that the bulk of the depreciation has already been paid for by the previous owner. Savvy shoppers know this and will sometimes wait for a model year they like to become one or two years old before buying it.

More Car At A Greater Value

Another helpful part of buying a used car is that you get more car for less money.

Let’s say that you are interested in the top-tier trim level of a luxury sedan. If you compare the cost of the 2018 model, which is now two-years-old, with the base-level model of the 2020 version, they might look very similar.

Since both vehicles are within your budget, you can either choose to drive the new model that has none of the features you want, or the highest trim level of the 2018 edition which comes with all the bells and whistles you wanted (and maybe even more).

Lower Insurance & Registration Fees

Since used cars have less resale value, the fees you pay on the vehicle are more affordable than new models.

Insurance companies determine the price of premiums based on the type of car that is associated with the policy. A general rule of thumb is that the more expensive the car is, the more the driver will have to pay to insure the vehicle.

When it comes to registration fees, a lot of states have begun increasing registration fees on new models in an effort to generate more revenue. Buying a used car will help a shopper avoid these fees altogether.

Used Cars Are Reliable

Not too long ago, car-buyers thought that used models were as unreliable as the sleazy salesman who would sell it to them. One example that brings this way of thinking to life comes in the 1996 family film, “Matilda,” with Danny DeVito’s character. He sells an absolute clunker to the hard-nosed principal of his daughter’s school while thinking nothing of it. He even confesses to his kids behind closed doors when he says, “Nobody ever got rich being honest.”

Flash forward 24 years later to today and this stigma is all but dead. Reputable car dealerships know that shoppers want to buy used cars, so the models these stores carry undergo a thorough inspection process. Some retailers, like the Ed Napleton Automotive Group, even include a limited warranty with the purchase of a used car. The end result is a happy customer driving a reliable vehicle for a lower price that is backed by a guarantee.

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Was your last vehicle purchase a used car? Are you in the market for your next vehicle and are seriously considering a used car?

Let us know about your personal experience with used vehicles in the comments so we can start a dialogue. Everybody has their own opinion that is based on past encounters and we are curious to know if you agree or disagree with our philosophy on used models.

If you are interested to learn more about the Ed Napleton Automotive Group and its 45 locations, visit https://www.ednapleton.com/.

If you are interested in a used car, check out the following sites for our inventory in Chicago, St Louis and the West Palm Beach Markets:

Used cars in Chicago

Used Cars in West Palm Beach

Used Cars in St Louis