When it is time to replace your vehicle, there are great reasons to buy a used one rather than a new model. Here is what you need to about buying a used automobile from a current owner or a professional vehicle dealer.
Benefit 1: Save a Lot of Money By Buying a Used Vehicle
If you are rolling in the money, then you won’t need to worry about the high cost of buying a new vehicle. However, unless you can pay cash up front for a brand-new automobile, you will need to borrow money from a bank. The interest rate on a new vehicle loan is high because the lender is taking a bigger financial risk. Alternatively, the interest rate on a used vehicle is lower, and in many cases, you can save enough money to buy a used automobile without needing to borrow any money.
Benefit 2: The Insurance Cost of an Older Vehicle Will Cost Less
Before you buy a new or used vehicle, contact your current automobile insurance agent to determine the cost of the insurance on different models. The cost of insuring an older model of automobile is significantly less. Depending on your age, gender, geographic location and previous driving history, the cost of insurance for a vehicle can vary greatly. If you buy a new vehicle, then the cost of the insurance plus the automobile’s monthly payment can make it difficult to afford gasoline.
Benefit 3: No Sales Tax From a Professional Dealer
In most geographic regions, if you buy a new vehicle, then you must pay sales tax right away. The cost of sales tax on a new automobile can add hundreds of dollars to its total price, leading to a bigger monthly payment. If you buy a used automobile from a private seller, then you won’t need to pay sales tax.
Benefit 4: Less Depreciation On the Vehicle
When you buy a new vehicle, its value depreciates immediately when you drive it off of the automobile parking lot. The average new vehicle will depreciate 20 percent during its first year on the road, and some automobiles have a higher depreciation rate. If you decide to upgrade to a different automobile in a few years, then its trade-in value is much less than what you paid for it.
Benefit 5: Avoiding a Vehicle Lemon
When you buy a new vehicle, you risk having an expensive lemon. A lemon vehicle is a newer model of automobile that has constant problems that require repairs, leaving you without transportation. Anyone who has purchased a lemon vehicle has suffered from the trauma of wasting money on a new automobile along with dealing with the frequent costly repairs.
Benefit 6: Saving Money On a Vehicle’s License Plates
The state that you live in will require you to register a vehicle and buy new license plates. The cost of paying for a new automobile’s license plates and registration is higher than for an older model of vehicle. The cost of the license plates and registration will drop each year that you own a vehicle, making an older model more affordable.
Benefit 7: Having the Manufacturer Safety Defects Repaired Before You Buy a Vehicle
After a vehicle is manufactured, repair shop technicians will begin to notice safety defects in the same model of automobiles. These problems are reported to a government agency that keeps track of the problems and notifies the current owners about the safety defects. If you have a vehicle with a manufacturer safety defect, then you should have it repaired. However, when you are shopping for a used vehicle, you can search on the internet to learn more about any defects before buying the automobile.
Benefit 8: Dealerships Often Offer Warranties On Used Vehicles
If you shop for a used vehicle from a dealer, then many of the automobiles will have warranties available. When you want to buy a used automobile that has a warranty, talk to a salesperson first to find the models that have this option. With warranty coverage, you won’t need to worry about paying for many types of costly repairs.
Benefit 9: Replacement Parts Are More Affordable
Eventually, you may have a vehicular collision or a part in your automobile may stop working. When you need to have a part replaced on an older vehicle, it is possible to buy refurbished parts that cost less. The technicians who repair vehicles can often source replacement parts from local junkyards where totaled automobiles are located.
Benefit 10: Worrying Less About Your Vehicle
If you buy a new vehicle, then you will obsess about not scratching it while driving it on a highway or parking it at the supermarket. With an older vehicle, you will worry less about any body damage.