Car commercials are meant to tempt young buyers to make a financial decision that can ruin them forever. However, buying an older, used car can be one of the best choices a car buyer can make. Not only is it cheaper, but also smarter if you’re a relatively new driver. In this article, we will be going over all the benefits of buying a used car in hopes that you make the right choice when buying one of your own.
Buy a used car is generally much less expensive than buying a new one. Of course, unless you plan on leasing a new car, your total cost can be thousands of dollars. Plus, most financial institutions require a downpayment of 10 percent. The less you pay as a down payment, the more you’ll end up paying month to month. However, there are still two other factors that can help you end up paying less: new-car depreciation and certification programs.
If you’re interested in buying a new car, we have great news for you. Buying older cars means that you have a much wider variety of cars to choose from.
Compared to a limited stock of new cars on the market, you have hundreds of older cars at dealerships to select.
Lower Insurance Payments
One of the key factors in deciding how much your monthly car insurance payment will be dependent on the overall value of your car. The older year your car is, the lower the value will be thus less monthly payments. Newer cars, on the other hand, can cost hundreds a month on car insurance, since their value will be higher.
Lower Registration Fees
Just like car insurance, your registration fee will depend on your car’s value. The older your car is, the fewer registration fees you will have to pay, which is especially good news for students. However, in some states registration fees are entirely based on growing their revenue and matter less on what your car costs.
Sales Tax Increases for Newer Cars
No matter how cheap the monthly payments were on your dream car on TV, the sales tax for it could end up costing hundreds of dollars. In comparison, older cars will have a much lower sales tax, you can use this leftover money to get your newly adopted car serviced. However, before you make a final decision on buying a new or used car, make sure you do plenty of research on your state’s sales tax laws. You don’t want to end up buying something you won’t have money for.
As soon as you drive a new car off the lot, it depreciates in value. In fact, owners of new mainstream vehicles can expect their cars to lose 30 percent of their value within the first two years of owning it. When buying a used car, you needn’t worry as much about the resale value. You can check out used car value guides to determine what your used car may be worth in the future when you must again go car shopping.
Certified Pre-Owned Vehicles
Buying a used car is safer today thanks to the emergence of certified pre-owned programs. Most car manufacturers have some sort of program like this in place. These cars have certain advantages over other used cars. Here are a few examples:
– These cars are subjected to rigorous mechanical and cosmetic inspections before they can get certified.
– In order to qualify, cars and trucks must be newer models, have low mileage, and have no history of major damage.
– There are a few manufacturers that offer special financing and lower rates on CPO vehicles.
– Though the price of CPO vehicles is higher than other used vehicles, it is worthwhile for the peace of mind that comes with receiving a superior product.
– They are covered by a warranty that lasts longer than the original factory warranty and offers a lot of the same features.
Use Technology To Get Better Peace of Mind
Back in the day, buying a used car was a gamble. Today, you can easily reduce your risk and stay away from unforeseen issues by using the digital tools available to you. Websites like Carfax and AutoCheck can provide you with a vehicle history report for your potential used car. They gather information based on your car’s VIN, or vehicle identification number. On the reports, you can see things like the verified mileage. You can also learn if the car was ever declared a total loss by the insurance company of a previous owner.
There are so many reasons why buying a used car would be a smarter choice than purchasing a new car. From the lower costs to less risk, a used car can be a great option for drivers.