Your Guide to Used Car Pricing
Shopping for a used car can be intimidating. From questionable sellers to fair prices, it’s hard to know if you’re getting a great deal or not. The Bettenhausen Certified Pre-Owned Megastore team wanted to demystify the used car market and help our customers better understand how to get a great pre-owned vehicle at an outstanding price.
How Pricing is Determined
When you’re looking at used vehicles online, pricing might seem like it has no rhyme or reason, but there are so many factors that determine the value of a pre-owned vehicle. The obvious ones, like mileage and condition, are easy enough to understand. More expensive vehicles will have fewer miles and be in better condition. Trim level, features, service history, depreciation, location, and even exterior color can play a role in how much a used car is worth. The best way to know if a price is good is to shop around with trusted dealers.
Financing New vs. Used
Financing options depend on the person and the vehicle. For new vehicles, interest rates are typically better, while used car loans often have higher interest rates. At Bettenhausen Certified Pre-Owned Megastore, we strive to offer flexible financing options for all our clients, whether they’re purchasing new or used. We may even have special incentives available on some of our pre-owned inventory to make sure you get a great deal without sacrificing an excellent customer experience.
Depreciation
All vehicles depreciate over time. Mileage, wear and tear, and aging technology all play into the depreciation of a vehicle. New vehicles depreciate more than pre-owned ones, with new cars losing an average of 20 percent of their value in the first year of ownership. Used car buyers can mitigate this and still get a reliable vehicle by purchasing a car that’s a few years old.
Insurance Costs
Because the sticker price is higher for new cars, the insurance premiums tend to be higher as well. If you finance a vehicle, new or used, your insurance will likely be higher than if you pay for a vehicle outright. Buying a high-quality pre-owned car can save you money on insurance.
CPO
Certified pre-owned inventory is hard to come by because the requirements are strict. However, a CPO model comes with added peace of mind, warranty coverage, and the guarantee that the vehicle is in pristine condition. CPO models are priced higher because they’ve been meticulously cared for, and offer buyers like-new vehicles with some of the benefits of a brand-new car, but at a lower price than a new car.
Navigating the used car market doesn’t have to be difficult. The most important thing is to find a transparent dealer who’s committed to finding the perfect vehicle for your budget. If you want to work with a dealership you can trust, contact Bettenhausen Certified Pre-Owned Megastore today to get started on your used car-buying journey.