Why Buying a Used Car Might Be the Smarter Choice: Insights from Latvia
When it comes to purchasing a car, the decision between new and used is more than just a matter of preference—it’s a financial and environmental calculation. In Latvia, where the average car age is 14-15 years, the trend is clear: used cars dominate the roads. According to the Road Safety Directorate (CSDD) and the Central Statistical Bureau (CSB), out of over 700,000 registered passenger cars, only about 30,000 are up to two years old. This raises the question: why are so many people, including the wealthy, opting for used cars?
The Rationality Behind Used Car Purchases
Edgars Cērps, founder and chairman of the board at JSC “Longo Group,” explains, “There is frequently enough the view that used cars are often bought by those who cannot afford new ones. This is not true. Even millionaires buy used cars. They are very good at counting money and realizing that the machine that is bought for everyday use is not an investment. It is an asset, which is constantly depreciating.”
This sentiment is echoed by the growing rationality among car buyers. More than 90% of buyers now start their car selection process online,comparing options and evaluating sellers’ arguments before even stepping into a dealership. “A person is able to evaluate everyone in the ‘pros and cons’ against the seller’s arguments in person, sitting in the car and feeling it’s power and convenience during a test drive. At this point,it is easy to make an emotional choice,but preparation helps to avoid an ill-considered purchase,” Cērps adds.
5 Tips for Choosing Between New and Used Cars
To help buyers make informed decisions, longo Group has compiled five essential tips:
- Calculate the Total Cost
beyond the initial price, consider operating costs, insurance, and maintenance. Used cars frequently enough have lower insurance premiums and repair costs, as non-original or restored parts are more affordable.
- Evaluate the Pace of Depreciation
A new car loses 20-30% of its value in the frist year,while a used car,especially one three to five years old,has already endured the steepest depreciation.
- Check Market Offer in Terms of Equipment
Used cars often come with premium features like leather interiors, heated seats, and panoramic roofs at a fraction of the cost of a new car.
- Consider the Environmental impact
Purchasing a used car reduces your ecological footprint. according to a report by Ricardo, cited by Auto Express, producing a new electric car generates 8.8 tonnes of CO2, compared to 5.6 tonnes for a gasoline or diesel car.
- Check the Car’s History
Utilize databases like CSDD and LTAB to verify a car’s history, including mileage and any insured incidents.
Key Comparisons: New vs. Used Cars
| Factor | New Car | Used Car |
|————————–|————————————–|————————————-|
| Depreciation | Loses 20-30% value in the first year | Already endured major depreciation |
| Insurance Costs | Higher | Lower |
| Repair Costs | Original parts only | Non-original or restored parts |
| Environmental Impact | higher CO2 emissions during production | Lower ecological footprint |
| Equipment | basic features standard | Frequently enough includes premium features |
The Bottom Line
The choice between a new and used car ultimately depends on individual preferences and priorities. though, the data and expert insights suggest that used cars are not only more economical but also a sustainable choice. As Cērps notes, “The numbers and facts show that rational-minded buyers are increasingly preferring used cars as more economically valid and sustainable.”
Whether you’re a first-time buyer or a seasoned car enthusiast, taking the time to evaluate your options can lead to a smarter, more informed decision.So, before you make your next car purchase, consider the benefits of going used—it might just be the best move you make.
