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Eight Reasons to Purchase a Used Car in Colorado

car-lot-at-massa-auto-salesWhile a brand new car may seem nice, consumers can pay significantly more for a new automobile than they would for a gently used car of greater quality. Colorado consumers can save money and get value by purchasing quality pre-owned automobiles instead of purchasing brand-new ones at auto pawn shops and used car dealerships throughout the Centennial State.

While some states like Florida and Texas are buyers’ markets for new vehicles, new vehicle prices in Colorado can often be more expensive. Smart consumers know this and are opting to purchase more used vehicles than new automobiles.

In the summer of 2017, Colorado residents purchased 58,170 used vehicles that are seven years old or newer and 54,840 new vehicles. For the year, gently used car sales have outpaced new car sales 167,640 to 155,091, according to the Colorado Automobile Dealers Association.

If you’re in the market for a vehicle, consider the benefits of purchasing a pre-owned vehicle of recent manufacture instead of a new vehicle for these compelling reasons:

Lower Price – This is the key argument in favor of purchasing a pre-owned vehicle. A vehicle that is just one or two years old can be significantly cheaper than a brand-new model of the same vehicle. If you’re seeking to save money, purchasing a pre-owned vehicle with just a few thousand miles on it is an excellent idea.

Avoid Massive Depreciation – Depending on the make of the new vehicle you purchase, you can lose between 10 and 50 percent of its value the minute you drive it off the lot. This means a brand new automobile for which you paid $35,000 would resell for $31,500 or less the very next day after you bought it.

By purchasing a used automobile that’s just a year or two old, you don’t take the depreciation hit.  New automobiles rapidly depreciate in value, but after two to three years the depreciation rate stabilizes meaning that you can recoup more of your money at resale.

Ten Vehicles with the Worst Depreciation

Make

Model

Five-Year Depreciation

Cadillac

CTS

57.7 percent

Volvo

S60

58.5 percent

Land Rover

Range Rover

58.5 percent

Chevy

Volt

58.7 percent

Volkswagen

CC

58.8 percent

Lincoln

MKZ

59.1 percent

BMW

7 Series

62.6 percent

Chevrolet

Impala

63.4 percent

Mercedes-Benz

S-Class

63.5 percent

Nissan

Leaf

68.3 percent

Source: https://cars.usnews.com/cars-trucks/cars-with-the-fastest-depreciation 

Lower Insurance Premiums – Car insurance premiums are typically much less expensive for used vehicles than new vehicles. Premiums are set based on a number of factors, including your driving history and the book value of the vehicle. As a brand new vehicle will typically have a higher book value than a comparable older vehicle, the cost to insure it will be greater. By purchasing a later model vehicle, you not only save on the sales price of the vehicle, you also reduce your cost of ownership by reducing your monthly automobile insurance premium.

auto-insurnace-quote-formColorado residents spend an average of $1,351 on car insurance premiums each year—somewhere in the middle of the pack for average insurance rates nationwide. If you’re tired of paying too much for car insurance that you might never need, a pre-owned vehicle offers a great way to lower your monthly payment.

Get a Nicer Vehicle – If you’re on a limited budget, purchasing a slightly used vehicle can allow you to get a lot more features and amenities than you could get in a new vehicle that costs the same amount of money. A budget that can only get you a base-level new vehicle with a dinky engine and few, if any, amenities could get you a top-of-the-line older version of the same vehicle with all the bells and whistles.

Finding the right used vehicle takes a little more shopping around than purchasing a brand new vehicle, but the effort is more than worth it when you find a vehicle that offers much more value for your dollar than a stripped-down new model.

Great for New Drivers – Why pay a new car price for a vehicle that your teen is inevitably going to ding, dent, or otherwise damage as they master driving and car ownership? Pre-owned vehicles give parents a great way to provide their teens with vehicles that are safe and affordable.

If you’re concerned about the reliability of a pre-owned vehicle, the internet makes it easier than ever before to research the history of a vehicle you want to purchase. Sites like CarFax and AutoCheck make it easy to find out how many owners a vehicle has had, whether it was used as a rental, and whether it’s been involved in any accidents or is a salvage or has a rebuilt title, etc.

car-pawn-salesman

Warranties Available – One of the major arguments against buying a used car instead of a new one is that you won’t get the same warranty protection that you would with a new car purchase. While the manufacturer warranty may be expired or soon to expire when you purchase a used vehicle, many used car dealerships offer extended warranty plans. These plans cover most of the things a manufacturer’s warranty will cover, and they are reasonably priced.

Some car consumers may feel apprehensive about purchasing a pre-owned vehicle because they don’t feel they’ll get the same longevity from it than they’d get from a new vehicle, but today’s automobiles are better-manufactured than ever before and are getting a more useful life than models past. With regular maintenance and good care, a quality pre-owned vehicle will remain in great shape until you choose to sell it.

 

Avoiding Expensive Fees - Colorado is one of the most expensive states to purchase a new vehicle, as state and local taxes, registration fees, and documentation fees tend to be higher here than most other states. According to a 2014 Forbes report, Colorado was the third most expensive state to purchase a new vehicle, in terms of government and dealer documentation fees. Colorado residents paid an average $2,284 in fees—or 13.8 percent of the sales price.

Five Most Expensive States in Terms of Car Fees

State

Average Government & Dealer Fees

Alabama

$2,313

Arizona

$2,297

Colorado

$2,284

Tennessee

$2,061

Florida

$1,869

Source: https://www.forbes.com/sites/jimhenry/2014/06/29/car-buyers-beware-cheapest-and-most-expensive-states-for-unexpected-fees/#5dfd1b3d6ef5

Document fees are set by dealerships, but taxes and government fees are based on the price of vehicles. The more money you spend on a vehicle, the more taxes you’ll pay. By buying a slightly used vehicle, you can obtain most, if not all, of the same features you want and pay less money in sales price and taxes.

For example, a brand new 2017 Chevy Tahoe has an MSRP of about $47,215, and, with average taxes and doc fees, would cost about $53,730. A 2015 Tahoe with reasonable mileage and in good condition will have a price of around $36,381, and, after fees and taxes, will cost about $41,401. That’s a significant amount of savings for essentially the same vehicle.

colorado-state-flagNew Car Smell – Quality pre-owned vehicles also come with that “new car smell,” too. Used car dealerships thoroughly clean and freshen up the interiors of vehicles they have for sale, and the “new car smell” consumers often rave about is easily achieved with cleaners and deodorizers.

Colorado residents in search of an affordable, quality automobile can find exactly what they’re looking for in the used vehicle market. Finding a used car dealership committed to customer service and satisfaction can help.

Massa Auto Pawn & Sales makes purchasing a quality pre-owned vehicle easy. With convenient auto pawn shop locations in Lakewood, Aurora, Pueblo, and Colorado Springs, Massa Auto Sales has a wide selection of competitively priced used automobiles to choose from. By shopping at Massa Auto Pawn & Sales, you’ll never pay too much for a vehicle again.

Sources

1. http://colorado.auto/downloads/cao_sept2017.pdf

2. http://www.insure.com/car-insurance/car-insurance-rates.html

3. https://www.forbes.com/sites/jimhenry/2014/06/29/car-buyers-beware-cheapest-and-most-expensive-states-for-unexpected-fees/#5dfd1b3d6ef5

4. https://www.kbb.com/chevrolet/tahoe/2015/commercial-sport-utility-4d/?vehicleid=399136&intent=buy-used&mileage=41517&condition=good&pricetype=retail

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