back to articles | October 15, 2025 | Greg Thibodeau
Categories: Auto Loans & Financing
Benefits of Buying a Used Car in 2025
The used car market offers a smarter path forward to get a reliable car with modern features.
Is It Better to Buy a New or Used Car in 2025?
New car prices hit a record high in September 2025. For the first time ever, the average transaction price crossed $50,000 - a milestone that puts new vehicles out of reach for most households.
But here's what dealers won't tell you: you don't need that kind of budget to get a reliable car with modern features. The used car market offers a smarter path forward.
Why Used Cars Cost Less (And Stay Valuable Longer)
The price gap between new and used is massive right now. A three-year-old vehicle with reasonable mileage gives you 90% of what a new car offers at half the cost. You're getting the same safety features, similar technology, and years of dependable service ahead.
The real advantage kicks in with depreciation. New cars lose 20-30% of their value in the first yearbefore you've barely made a dent in your loan. That $50,000 truck? It's worth $35,000-$40,000 twelve months later.
When you buy used, that value drop has already happened. Your car will still depreciate, but at a crawl compared to new models. Three years down the road, you'll recoup a much higher percentage of what you paid.
The Hidden Savings Add Up Fast
Insurance companies base your premium on replacement value. Less expensive car, lower premium. Depending on your coverage and the vehicle, you could pocket $500-$1,000 annually just on insurance. Over five years of ownership, that's real money.
Registration and sales tax work the same waythey're calculated on purchase price. A $26,000 used car costs considerably less to register and tax than a $50,000 new one.
You Get More Car for Your Money
Here's where the math gets interesting. A $30,000 budget shopping new gets you a basic sedan or compact SUV. That same $30,000 shopping used? You're looking at vehicles that cost $55,000-$65,000 when new.
Want leather seats, a panoramic sunroof, advanced driver assists, or a premium sound system? Buying a two or three-year-old model moves all that within reach. A well-kept luxury car from 2022 beats a stripped-down 2025 economy model every time.
Modern Cars Last Way Longer Than You Think
Today's vehicles routinely hit 200,000 miles. A five-year-old car with 60,000 miles? That's not even halfway through its useful life. Better manufacturing, synthetic oils, and improved engineering mean "used" doesn't mean "unreliable" anymore.
You can research any model's track record before buying. Consumer reports, owner forums, and repair databases tell you exactly what problems (if any) a specific make and model tends to have. No surprises.
How Used Car Financing Actually Works
Yes, used car loan rates run higher than newaveraging 14% versus 9%. But monthly payments tell the real story. The average used car payment is $529 compared to $749 for new vehicles. That's $220 in your pocket every month, or $13,200 over a five-year loan.
myAutoloan helps you find the best rate for your situation. Submit one application and get up to four competing offers from different lenders. They compete for your business, you compare rates side-by-side, and there's no hit to your credit from shopping around.
It works regardless of your credit profile, and having pre-approval before you shop puts you in the driver's seat during negotiations.
Smart Shopping Tips for Used Car Buyers
Go for the sweet spot: Three-to-five-year-old vehicles with 36,000-60,000 miles offer the best value. They've taken the depreciation hit but have plenty of life left.
Consider certified pre-owned: CPO programs add inspections, warranties, and roadside assistance. You pay a bit more than regular used, but gain peace of mind closer to what new car buyers get.
Get it inspected: Before you buy, have an independent mechanic check it out. A $150 inspection can save you from a $5,000 mistake.
Pull the vehicle history: Reports from Carfax or AutoCheck show accidents, title issues, and service records. They're worth the $40.
Frequently Asked Questions About Buying Used Cars
What are the disadvantages of buying a used car?
Older vehicles need more maintenance, and you won't get the absolute latest tech. CPO vehicles solve most concerns with inspections and warranty coverage. Even non-CPO cars are more reliable than used cars were a decade ago.
How can I make sure I'm buying a reliable used car?
Check reliability ratings, get a vehicle history report, and pay for a pre-purchase inspection. These three steps catch most problems before you buy.
What's the best age for a used car purchase?
Three-to-five years old with under 60,000 miles. You avoid the worst depreciation while getting a car that's barely broken in.
Can I negotiate used car prices?
Absolutely. Used car prices are often more negotiable than new, especially when you show up with financing already secured. You're a cash buyer in the dealer's eyes.
Ready to start? Get pre-approved with myAutoloan and see what rates you qualify for. One application, up to four offers, no obligation.
Disclaimer: Loan rates vary by credit, term, vehicle age, and lender. Multiple offers help ensure competitive financing for your situation.