Why Buying a Used Car Can Be a Smarter Financial Move Than New
That new car smell is hard to resist, but for many Massachusetts drivers, a used car is the smarter financial decision. Between depreciation, insurance costs, and the price of financing, buying used can put thousands of dollars back in your pocket over the life of your loan.
At Common Trust Federal Credit Union, we believe every member-owner deserves to make big purchases with confidence. Here is what to know before your next car purchase, and how Common Trust FCU can help you finance it.
The Real Cost of Depreciation: Used Cars in Massachusetts
The highest hidden cost of a new car is depreciation. A brand new vehicle can lose roughly 20 percent of its value in the first year alone, and closer to 30 percent within the first two to three years. That value disappears the moment you drive off the lot, no matter how well you take care of the car.
A used car, especially one that is two to three years old, has already absorbed that steep first-year drop. From that point forward, its value declines much more slowly. For Massachusetts drivers who plan to keep a vehicle for several years, that difference alone can mean paying far less for the same reliable transportation.
Lower Monthly Payments With a Used Car Loan
Because used cars carry a lower purchase price, a used car loan typically comes with a smaller balance and a lower monthly payment than financing a new vehicle of similar quality. That frees up room in your monthly budget for savings, paying down debt, or other financial goals.
A smaller loan balance can also mean paying less interest over the life of your loan. Rates and terms are based on creditworthiness and the details of each loan, and they are subject to change, so you can always find the latest numbers on our Loan Rates page. Looking for more information? Our team is happy to walk you through real numbers based on your situation.
Insurance, Taxes, and Fees: Where Used Cars Save Massachusetts Buyers Money
Depreciation is not the only place a used car can save you money. The savings often continue long after you drive home.
Lower Insurance Premiums
Comprehensive and collision insurance premiums are generally lower on used vehicles, simply because they are worth less to insure. Over several years of ownership, those monthly savings add up.
Lower Massachusetts Excise Tax
Massachusetts excise tax is based on a vehicle's value, so it also tends to be lower on a used car in the years after that first steep depreciation hit.
Fewer Add-On Costs at Purchase
Registration fees and add-on costs can add up quickly on a new vehicle purchase. Buying used trims those extra costs without sacrificing reliability, especially when you choose a well-maintained vehicle with a clean history report and have it inspected before you buy.
Building or Rebuilding Credit Before You Finance a Used Car
Not every buyer walks into a used car purchase with strong credit, and that is okay. If you are working on building your credit history before applying for an auto loan, our Credit Builder Loan can help you establish a positive payment history that may improve your loan options down the road.
Members also have access to our free Financial Education Center, powered by EverFi, with quick courses on budgeting, credit, and smart borrowing. Whether you are buying your first car or your fifth, a little planning goes a long way toward keeping your total cost of ownership manageable.
Why Middlesex County Drivers Choose Common Trust FCU for Used Car Financing
Common Trust Federal Credit Union has served the Middlesex County community since 1966, with branches in Lexington, Woburn, on the Bedford VA Hospital campus, and in Wellesley. As a not-for-profit credit union owned by our members, we offer a small-town feel with big-city solutions: a more personal lending experience than many large banks or online lenders, with local staff who can walk you through your options in person or over the phone.
Our Bedford branch, located on the Bedford VA Hospital campus, is a particular point of pride and a reflection of our commitment to the veterans and families in our community. Wherever you are in Lexington, Woburn, Bedford, Wellesley, or the surrounding Greater Boston area, our team is ready to help you finance your next used car with confidence.
Get Pre-Approved for a Used Car Loan in Massachusetts Today
Ready to see how much you could save by financing used? Getting pre-approved for a used car loan before you shop gives you real numbers to work with and stronger negotiating power at the dealership or with a private seller.
Already a Common Trust FCU Member?
You can start your application right away online, or stop in or call your local branch, and our team will help you get started.
New to Common Trust FCU?
Joining is simple. Your membership is established with a Share Savings Account, and as a member-owner, you gain access to Vehicle Loans, Credit Builder Loans, and every other product and service we offer. Visit our Membership page to verify your eligibility.
Common Trust Federal Credit Union proudly serves Massachusetts members in the Woburn, Bedford, Lexington and Wellesley area. Have questions? Stop in or call today. We are here to help.