Everyone loves that “new car” smell, but
is it worth the extra costs?
Is buying a used car the smartest move?
Facts below:
1. Buy a Used Car for Better Value versus a New Car
Because cars depreciate in value mostly over the first few years of ownership,
used cars that are only a few years old tend to be better deal than new
cars, for the amount of use and mileage left on the car.
2. Buy a Used Car for Cheaper Ancillary Expenses
Everything from the taxes you pay on the purchase of your car to the insurance
you need, will be cheaper with a used car that cost less at the point
of purchase than a new car.
3. Buying a New Car Isn't Always Problem-Free
Although "peace of mind" is one of the main considerations people
give to buying a new car, manufacturing problems that have yet to be discovered
mean that some new cars may end up being as problematic as an old car.
Car Buying: Why Can You Save Money When Buying A Used Car?
Purchasing used cars instead of new cars can save consumers a considerable
amount of money. As you may know, vehicles can lose up to forty percent
of their value within the first few years of ownership due to depreciation.
Right after these initial years, the depreciation on the vehicles slows
down. Therefore, if you were to buy a used car that is at the beginning
of the low depreciation part of the car ownership cycle, the initial owner
of the vehicle would have absorbed the greater part of the car's depreciation.
Overall then, you would have a lower car price and lower car payments.
Therefore, if you were to finance a car, you definitely would have less
money to pay in interest payments. This situation, in turn, frees up your
money for investment.
Buying A Car: Other Reasons Why Buying A Used Car Can Save You
Money
Along the same lines, you would also pay less in taxes as a used car price
is lower than the purchase price on a new vehicle. If you choose a car
model that is not extremely popular, the savings can be even greater as
a lower demand for a particular model means a lower used car price for
you, the consumer. In addition, when a used car is purchased, insurance
rates are also cheaper. This lower cost can add up to quite a bit of savings
for consumers. With used vehicle purchases, there are additionally lower
registration and license fees as the purchaser of a new car usually absorbs
these costs. Other hidden fees that the purchaser of the new car usually
pays for include; the transportation costs of the new vehicle and the
car dealership's advertising costs. Additionally, people buying used
cars do not have to pay for "add-ons" that include rustproofing,
paint protection and fabric protection.
Buying A Car: Important Factors To Consider When Buying A Used
Car
It is important though, when buying a used car, to consider buying from
a reputable car dealer. This is because car dealers must adhere to government
laws that require the dealerships to inspect a vehicle before selling
a previously owned vehicle; so you know that you will not receive a "lemon,"
and end up paying more for the used car in the long run because of major
car repairs. Plus, the used car market is a lot safer than it used to
be. With vehicle history reports as well as research and pricing services
online, you can ensure that you are choosing a used car that is going
to be a dream come true, not a lemon.
Also some dealers offer a one year warranty on all used cars purchased
from them. Besides, when one purchases a new car, there is no guarantee
that it will be a problem-free car as there could be problems associated
with manufacturing defects down the road. Thus, a consumer can save a
considerable amount of money when he or she purchases a used car.
