Experts advise at buying used, not just to save money but because cars today are built to last unlike they were prior to the 1980’s. Of course, there are still some precautions to take as used cars are only as good as their previous owner. Plus, doing a bit of research will ensure one doesn’t end up with a lemon.
Depreciation? Not an Issue
As stated before, a new car depreciates the moment it leaves the lot, and that’s at a whopping 20 percent. They also may lose up to 10 percent more in the first year. So if the car was originally $40,000, it would lose around $12,000 loss in the first year.
How can one buy and avoid that loss? It’s simple, buy a car that is about a year old. While hard to come by, they are definitely not impossible to find. If that’s too difficult, two or three years old is still a great deal. This is because the depreciation comes to a halt in the second year and then picks up again around five years old; so there is that sweet spot in there that buyers should look for.
Cut Registration Fees
One thing many don’t realize is that the fee that is charged to register any vehicle is solely based on the price it’s purchased for. So, when one buys used they can avoid any increases from the state of purchase.
Keep Insurance Low
Insurance will always be lower on a lower priced car, another reason going for used cars is smart. Not to mention, once vehicles hit a certain age there is no reason to carry extras on insurance which typically boost the cost.
Just think of all the extras available when buying used cars. This is yet another benefit in the entire process. Everyone would love having a classy, luxury vehicle but definitely the average buyer would have trouble affording one brand new. No one will even be the wiser if a luxury car is a couple years old; car designers are sticking to very similar designs.
Plus, when one drives a used car until it will drive no more they are getting the most for their money. Cars built in the last 30 years are good to go for up to 200,000 miles whereas the old adage was to sell or trade in by 100,000.
In short, no longer is buying used cars buying someone else’s problems as was so long believed. There are sites that do the research so that buyers will know all they need to in order to ensure the vehicle they are checking out is good. This means no accidents and free and clear as far as the title.
Further, one can now get a certified, pre-owned car that has undergone major checks in order to ensure they’re a great buy. The best part about certified pre-owned used cars is that they come with all the benefits of a new vehicle. This includes stellar warranties and amazing interest rates. They are definitely worth the investment.
Aligning with the best dealerships and assistants when it comes to buying used cars, and doing some research means that one will obtain a gently used vehicle that will last for many years and give reliable transportation.