If you are a millennial and you are looking to buy a car, you are probably trying to decide between new and used cars for sale in Philadelphia. In order to find the answer, you need to consider a number of different factors.
Greater Financial Stress
Millennials are typically less financially secure than Baby Boomers and Gen X. The median income for millennials is down by as much as 21% and their average net worth is less. More millennials are earning less than the older generations and tend to carry more student loan debt.
Such financial woes have more millennials still living at home with their parents because they are typically unable to cover the cost of homeownership. They avoid having children due to the high cost of child care. These are just a few of the financial pressures that millennials face, which is the reason that buying used cars for sale in Philadelphia is the favored option.
Once a brand-new car is driven off the lot, it loses as much as 10% in value. Within just the first year, new cars lose another 10% in value. In as little as five years, a new car is only worth 40% of the original purchase price. This means that the car is already worth less than the amount that you owe on it.
When you buy used cars for sale that are less than five years old and have been properly maintained, you are getting a like-new vehicle at a better price because the initial depreciation has been absorbed by the original owner. This means that millennials are getting more for their money when they buy used.