Financial Advice

Buy & Own a Car


Seven Reasons to Buy a Used Car

Used cars are not to be overlooked as you consider your next car purchase. Previously owned cars can be a great value, and benefit you in several ways. What follows are some reasons why buying a used car might be a great choice for you.

  1. Depreciation — New cars lose much of their value in the months and years after purchase. As a rule of thumb, a new car loses almost 50% of its value in the first three years of ownership.

  2. Lower Purchase Price — Speaking of depreciation, used cars simply cost less. Buying a car after it has already depreciated a bit can make your purchase price more closely match the resale price.

  3. More Car for the Money — This one is also linked to depreciation. The money you save by not paying for depreciation can be spent on buying more car than you would have been able to buy new. Those savings could be put toward a more expensive model, a more luxurious trim package, or more advanced technology features.

  4. Call (512) 498-CARS (2277) to learn more about auto loans, or apply online.
  5. Certified Pre-Owned Programs — Certified pre-owned (CPO) programs remove a lot of the mystery and uncertainty from buying a used car. Almost all carmakers have CPO programs that include some form of limited warranty and a free vehicle history report. A warranty and detailed information about the previous ownership and usage of the car can add assurance that you’re not buying a lemon.

  6. Lower Insurance Costs — Insurance companies use a car’s value to determine insurance rates, so you will pay lower insurance premiums for a used car.

  7. Cheaper Registration Fees — Vehicle registration practices and fees vary by state. However, in many states, the fees and taxes levied are based on the age of the vehicle. Older, used vehicles can save you significant money on this yearly expense of owning and driving a car.

  8. Sustainability — The manufacture and transport of new vehicles has significant environmental impact. You can often better help the environment by purchasing a used, fuel-efficient vehicle.

Whether shopping for new or used vehicles, University Federal Credit Union offers low rates on auto loans and can help you every step of the way on your next car purchase. Still not convinced? Buying used is not for everyone, and there are also advantages to buying new. Before you decide, read Eight Reasons to Buy a New Car.