Thinking about buying a used car? It is normal to be attracted by a great-looking new car, especially since ads are all around us, even on the internet. However, is the new car a really good investment for you? Believe it or not, in many cases the best choice is purchasing a used vehicle. This is due to the fact that there are some clear advantages that have to be taken into account. We will talk about them below.
This is, by far, the biggest advantage of buying a used car since it can easily cost 50% of the price of the new vehicle. This means that you pay off the car faster when you take out a loan.
Statistics show that the average car owner switches vehicles every 6 years on average. This means that if instead of $20,000 you pay $10,000, you end up saving a lot of cash and the following car you buy can be a lot nicer since you will have more funds available.
Take a look at the very best crossovers of 2019. Their prices are still high when they are new but if you buy them used, you quickly notice that prices are a lot lower. This is because of the fact that there is an instant value depreciation that happens when you first buy a vehicle.
If you buy a new car, as soon as you take it home, you can expect is value to drop by around 10% or even more. If you were to buy a used car that was recently purchased as new, you simply pay a whole lot less. This fact opens the doors to some wonderful deals in the sense that you can buy a used car that is of the same quality as the new vehicle but at a discount.
Low Insurance Premiums
One thing that few people know is that insurance policies pay for the current value of the car, not what you paid for it when you bought it. You would need gap insurance in order to deal with this difference. With the used car you do not need to pay for gap insurance since depreciation happened.
There are many reasons why the new car is always more expensive when it is first launched and eventually bought. One of them is that the manufacturer needs to cover some costs. They are hidden in the sense that they are not mentioned. You just pay more. The presence of these fees can easily add thousands of dollars to the price tag. With the used car, there is no hidden fee.
Low Customization Costs
We all want to make our car our own and there are countless different customization options that are available right now. The problem when you buy a new car is that the dealership add-ons are very expensive. This is especially the case when compared to how much you have to pay when you customize a used vehicle. In fact, the money that you save by the fact that you buy a used car can usually cover most customizations you would want and you still end up with some cash in your pockets.
Helping The Environment
You should know that 25% of the carbon dioxide that is produced by a vehicle during its entire life-cycle appears during the initial shipment and manufacturing. As you buy the used car, the carbon dioxide you output is instantly reduced. This is even true when comparing to hybrid vehicles.
Low Annual Registration Fees
When buying a used car in the USA, in most of the US states, annual registration fees are based on the value of the car and the year of the model. Usually, rates are very high during the first 3 years. Then, they are a lot lower after 5 years. This means around $1,000 can be saved by simply avoiding the registration fees of the new car when you buy a used car that is over 3 years old.