When it comes to purchasing an automobile, the first topic usually up for debate is whether or not to get a new or used car. Buying a Used Car can in many ways help you stretch out the most of your budget while getting more value for your money as well. Whether it be less depreciation, zero sales tax, lower registration fees, or no dealer fees, Buying a Used Car is usually going to come out far ahead of buying a new car.
The top 5 reasons to buy a used car over a new car
Used cars last longer
New modern cars today, complete with a wide array of useless electrical gadgets, LED screens, and other delicate features, tend to be far more prone to wear and tear than car models produced years or even decades earlier. If you want a car that will last more than 100,000 miles then you most certainly should be shopping for a used low-milage car with a moderate amount of features.
Avoid car dealer fees
When you buy a new car fresh off the dealer lot you get hit with huge dealer fees. Each passing decade these dealer fees get larger and larger, sometimes making up 5% of the total purchase price of the new car. These fees can often times include shipping fees, dealer processing fees, new car tags, new car registration, salesman commissions, and other bogus expenses. When Buying a Used Car you don’t have to worry about paying for any of these built-in dealer fees.
No new car sales tax
Many people are unaware of the fact that new cars usually carry a much higher purchase tax than a used car. Even if your car is classified as used, but only possesses a few hundred miles, the taxes on it will be far less than they otherwise would be if the car was new. Essentially the first person to register the car in their name gets hit with this heavy new car tax. If you get a used car instead then you can expect to pay far fewer tax-related expenses.
Used cars incur less depreciation
It is a well-known fact that used cars incur far less deprecation than new cars. Depending on the brand of the new car that you purchase, you can expect your car to depreciate up to 20 % just by driving it off the new car lot. If you want to prevent this phenomenon from happing, then stick to buying a used car that is still relatively new. The person that purchased the new car first will be the one to lose heavily on the new car purchase due to the depreciation factor.
Lower insurance rates – It is well known that used cars typically cost far less to insure than new cars. This is due to the most obvious fact that new cars cost more than used cars typically, and in many cases, these new cars are being financed with loans. In order for the bank that holds the new car title for collateral to secure their investment, it is required to have high-end insurance coverage in order to protect the bank’s stake in your new vehicle.