There is a lot of appeal and attraction to buying a brand new car. You get the full factory warranty, you can personalize it just the way you want, you get to drive something no one else has driven, and then there's that good old new car smell. But if smart investing is your aim then buying a pre-owned car over a new one just might be the better option. Of course there are things to look out for when buying used, such as the condition of the car and the honesty of the seller. But if you can find a used car in good condition with low mileage then you will be set. Here are a few reasons why buying used is often a smarter investment then buying new.

Get More for Your Dollar

Buying used will always be cheaper than buying new and that's a guaranteed fact. On top of that, buying used will allow you to get more car for your money. You might not be able to get a brand new luxury car, but you can get one that's a few years old. And, since carmakers are producing better quality cars, even an older car will last you for a long time if you take care of it. Buying used might also enable you to get extras, such as a sun roof or Bose sound system, which you couldn't afford if you bought brad new. Or it could allow you to fix any small problems the car has, like windshield cracks by taking it to a windshield repair shop.

Minimized Depreciation

Brand new cars can lose up to twenty percent of their value the moment they are driven out of the dealership. On top of that, most will lose up to another ten percent over the course of the first year. That's a thirty percent loss in value during the first year, or $9,000 lost from every $30,000. You won't have to suffer through this enormous loss in value (which equals loss in money if you need to sell later) if you buy a used car. Also, depreciation of value flattens out after the first year, so you will have less of a loss if you need to sell a used car later on.

Reduced Registration Charges

Registration fees, something that each individual state charges to register a car, are constantly rising. And since they are based on the car's purchase price buying a pre-owned vehicle is a good way to pay less in such fees.

Reduced Insurance Charges

Just like you can reduce registration fees, buying a used automobile will also come with lower insurance fees. Car insurance is based on the value of the car. A newer car has a higher value and thus the insurance will cost more. Some components of car insurance, such as theft and collision, can even be dropped from the coverage when the car is old enough, making insurance even cheaper.

A Greater Peace of Mind

What makes buying a used car an even smarter investment is the fact that some options enable you to have the same warranty safety of a new car. Certified pre-owned vehicles are ones which meet the manufacture's standards and carry a guarantee to back that up. And even if you don't buy a certified car you still have the option of looking up the Carfax report to learn about the history of the car and to see if there are any problems you should know about beforehand.