Since its debut for the 1999 model year, the Chevy Silverado 1500 has broken the mold on multiple occasions to become the most popular pickup currently sold in the United States. While there’s a lot of excitement about the 2023 model year, many consumers have their sights set on purchasing pre-owned vehicles, if for no other reason than to obtain the quality that’s synonymous with Chevy at a slightly lower price. If you’re currently in the market for a new truck and looking for a used Chevy Silverado dealer, then you’re in luck. The information presented here today is meant to help you make an informed decision when considering the impressive Silverado as your next vehicle.
More Features for Less
Usually, we would start our discourse by going over the advantages of buying used as they relate to cost; however, we wanted to start our list by discussing a subject that’s slightly more appealing to the consumer looking to get more for less. This entails going back to when the global pandemic first hit and the world was thrown into complete disarray. While terms such as “social distancing” and “quarantine” became more normalized than ever, another tumultuous event hindered several manufacturers’ production quotas. This took the form of a worldwide microchip shortage. One that, at the time of this article, is still ongoing.
Not only does the shortage hinder the production quotas of the major manufacturers, but it also limits the number of features that vehicles can come with. Today’s vehicles are more complex than ever before, and with so many sensors, driving assistance features, and onboard computers, the microchip shortage has played a considerable role in limiting their availability. This means that finding a Silverado 1500 produced before 2020 will afford you more features, and in the next section, we’ll explain how you’ll be able to get it for a much cheaper rate.
Appreciating the World of Depreciation
Have you ever considered why used vehicles sell for a cheaper rate than new ones? Well, there’s the obvious answer that they’re previously owned, and that usually indicates a lower cost, but there’s actually another determining factor when it comes to purchasing a used Chevy Silverado 1500, and it’s something that applies to every vehicle that’s currently on the marketplace. This is what’s known as depreciation.
Depreciation is the gradual decline of a vehicle’s value over time. From the moment a vehicle is sold at a dealership, its value decreases slightly every year. If you’re planning on making a serious investment in a used Silverado 1500, you can make depreciation work for you in a variety of ways. For instance, let’s say you want to purchase a Silverado that was manufactured in 2019 before both the pandemic and microchip shortage took hold of the planet and made us stray away from normalcy.
Because the vehicle is four years old, it only retains 80% of its original value. This means savings of over $11,000. Going back even further, a Silverado 1500 made in 2016 retains less than 70% of its value, which equates to savings of over $17,000. This is the advantage of buying used; by making depreciation work for you, you’ll pay much less and get more. If you’re unsure of how much the Silverado you’re looking at has depreciated, publications such as KBB (Kelley Blue Book) have a yearly publication that charts every vehicle on the market.
Factoring Routine Maintenance and Service
Any vehicle that you decide to purchase isn’t just the acquisition of a consumer good but an investment in your future and quality of life. Now, you don’t need to be an experienced financial advisor to know that the purpose of any investment involves recouping a return over a certain length of time. In the case of a Chevy Silverado 1500, this means having routine maintenance performed at regular intervals to ensure its longevity and performance.
It’s recommended that you get your oil changed and tires rotated around every 7,500 miles and have the steering and suspension inspected and serviced every 15,000 miles. How much you pay each year for maintenance has a few variables that affect this number. How often you drive, how much strain you place on your vehicle, and whether or not you use your Silverado for heavy-duty jobs. That said, we consulted the industry averages to get a ballpark figure regarding how much you should expect to pay.
It’s estimated that those who buy a new Silverado and own it for a period of ten years will average roughly $10,000 in repairs and maintenance. This is less than the industry average, which points in the vehicle’s favor. The yearly cost stays well below $1,000 for the first six years after production, with the probability of a major repair being less than 17%. Yearly repair costs do increase over time and depend on how old a vehicle is. If you’re looking at a Silverado 1500, we advise that you ask to see the detailed history in the form of a CARFAX report and repair receipts, if applicable. This will give you an idea of what the track record of the vehicle has been.
Insurance Costs
When most people calculate monthly costs for the vehicle they own, they usually factor in the fuel cost but seldom think about how much they’ll pay for insurance. And, much like the driving habits that affect the need for routine service, insurance is something that’s nonlinear when examined. Insurance rates vary greatly, and this comes down to a number of contributing factors, such as age, driving record, whether or not you use your vehicle for work or recreation, and the kind of vehicle you drive. An advantage of buying used is that used vehicles carry with them lower insurance premiums, as most insurance companies require full coverage if you’re financing an offering from the current model year.
That said, the average cost for insuring a Chevy Silverado 1500 equates to approximately $1,858 per year. Similar to the amount of money spent on repairs, this is still well below the industry average. Another factor that determines your insurance premium is your credit score. A driver with good credit can expect to pay anywhere from $1,600 to $5,000. Before purchasing a Silverado 1500, it’s recommended that you shop around for rates and get a recent credit report to find the best deal.
A Final Thought on Buying a Used Chevy Silverado 1500
The Silverado 1500 is a highly capable vehicle that many drivers have heaped massive amounts of praise upon. Today, we didn’t roll out the powertrains, towing capacities, or features. Instead, we opted to give you an idea of some of the items you should take into consideration before you purchase one. Owning a vehicle takes a great deal of responsibility and should not be taken lightly. We wanted to show you that while these costs are necessary, they’re a small price to pay for such a capable and versatile vehicle. Armed with some of this information, you should begin to get a better idea of the costs associated with buying this exceptional truck on the used market. Thank you for reading, and we’ll see you on the road!
