Buying Used vs. New
Buying Used vs. New
If you are looking to buy a car but also want to save money, then you should invest in a used car. More and more, buyers are becoming attracted to the concept of used cars. Additionally, more contemporary used cars are much more reliable and trustworthy than their older counterparts. Provided below are some of the most prominent reasons why you should invest in a used car instead of a new one.
Minimize Depreciation: A new car loses 10% of its value as soon as it leaves the dealership lot. Additionally, a new car tends to lose approximately 30% of its value during the first year of ownership. However, when you buy the right used car, you can purchase and sell it without losing the equity. Within the second year of a car’s ownership, the depreciation tends to flatten out. When the car is experiencing lower depreciation, you are likely to lose less money on it.
Reduced Registration and Insurance Fees: The registration fees on a car depends on the purchase price. So, when you buy a used car, you are more likely to pay less for registration fees as opposed to when you buy a new car. Moreover, the overall value of the car is what determines the cost of car insurance. Considering that a used car holds less value than a new car, the cost of insurance will also be less.
Save a Considerable Amount of Money: Used cars typically cost 50% less than new cars. This means you will be able to pay it off much sooner and even save on the financing fees. According to reports, consumers switch cars six years after their purchase.
Peace of Mind: One of the benefits associated with buying a used car is that it allows you to drive carefree. When you are driving a new car, you are more careful about getting dents and scratch on it. People typically don’t take their new car out for a long drive before its first service. In short, people are naturally less apprehensive when driving used cars.
The way used cars are purchased and sold has significantly changed over the past couple of years. Gone are the days when people bought used cars merely on the verbal assurance of dealers, salesmen, or individuals. Today, you can purchase a certified used vehicle, thereby guaranteeing a higher reliability. You can research and check online to get the full picture of the certification that a used car possesses.
Above all else, certification lets the buyer know that the car has been thoroughly checked by a certified engineer in order to ensure that the car is in perfect condition. Moreover, you also get a purchase warranty to make sure your used car runs just like the new one.