Buying a car is something that the average person will have to go through in their lives. There are a lot of choices, used cars that are priced way below the range, a shiny new car, used toyota trucks, or a certified pre-owned vehicle. Most people that are smart will opt to go with a used vehicle. A brand new car is simply too expensive and impractical than a used car. Many experts say that buying a brand new car on a loan is actually one of the worst financial decisions one can ever make. There are compelling reasons why it is so much better and practical to buy a used car.
Lower Registration and Documentation Costs
A used car has lower registration costs as these depend on the value of the car. They would also have lower insurance premiums. Insurance companies consider a car’s age and fair market value when computing for the premium you have to pay to keep it insured. The higher the value of the car the higher the premium in general terms. When a vehicle costs less, it is also cheaper to insure and register.
You Avoid The Brunt Of Depreciation
As soon as you drive that new vehicle down the lot, it has already lost 20-30% of its value by the time you reach home. A car’s depreciation drops by as much as fifty to seventy percent in its first year off the showroom. By buying a used car you avoid taking the brunt of this depreciation. You will still experience loss, but not as alarmingly high as fifty to seventy percent. This is why used cars are appealing for those who buy cars and then sell them after using. When buying second hand, you can almost sell the car for the same amount you got it for because depreciation happens slowly and evens out after the first two years of the car’s existence. Add in some extras such as a high-end stereo system and you may even get a profit from it.
You Get A Lot More Car For Your Money
For the same amount of money that one might shell out for a regular daily driver and a basic car that is brand new, one can get a luxury vehicle that is a little bit used. What this means is that you get a lot of car for less money. Luxury vehicles are made to last and filled with tech that may not even be in the brand new car. Furthermore, cars aged less than 10 years have never been more dependable. Most cars will run for more than 100,000 miles before ever needing major repairs.
More Documented Than Before
One more advantage of buying a used car at this age is the availability of maintenance records. Most reputable dealerships will have this history handy, all you need is to ask for them. If these records are unavailable, it is high time to move on to the next car in line. This is especially true with CPO or certified pre-owned vehicles. These vehicles usually are in excellent condition and cherry-picked among the rest. While CPOs are generally a little more expensive than a regular used car, you will still pay a lot less than a brand new car.