You’ve long been eyeing that slick, brand new car. Your mind and your heart say yes, but your wallet tells you that it’s not just feasible. Despite the availability of financing options, you know deep inside that buying a brand new vehicle right now is just going to blow a big hole in your pocket.
If this is the case, don’t dampen your spirits too much. There are still many alternatives to buying a car, and one of the best options is purchasing a used one. All thanks to the many umbrellas of protection today, there’s minimal stigma now with buying used cars, especially with regards to the quality. In fact, there are many benefits that you can gain from purchasing a used car. Some of these include:
This first benefit of buying a used car is one of the most apparent advantages that you can gain from so doing. A used car will naturally cost lesser than a brand new car would. The price tag on a used car is around 50% less than that of a brand new car. Especially when you buy used cars that are well taken cared of, they’ll look just as good as brand new ones do.
To help you start your search, read more on this site to view more used car options, along with their corresponding price tags.
When you’re buying a used car, the original owner absorbs the depreciation. This means that when you purchase the vehicle, you suffer less from depreciation. Most individuals who sell their car, do so at around the third year after purchase. If you can purchase a used car with that age, then you know you’ve got an excellent deal. The vehicle is still relatively new, but already with less depreciation. It’s also relatively old, but not too old for it to be of terrible quality. The third-year is also when new cars depreciate heavily, so by the time you buy a car that’s over three years old, the depreciation will have already dropped significantly.
In comparison, however, if you buy a new car, you suffer so much of its depreciation. First, obviously, you’re paying full price for the car. But, the moment that the car leaves the dealership when you take it home, right there and then, the car is labeled as used. So, in less than an hour, you’ll automatically have suffered around 20% of the car value lost to depreciation. That’s a lot of money down the drain for a brand new car.
Apart from the upfront savings that you have in terms of the purchase price, you also save on the inherent cost of ownership. Note that your financial responsibility when you own a car doesn’t only end upon the payment of the car’s purchase price. There are the other incidental fees that you’ll have to pay for as you own the vehicle, including insurance and registration renewal.
The simple equation followed by insurance providers is that the more expensive the car is, the higher will the cost of insuring the vehicle be. Because you’re buying a used vehicle, the value is lower. This also means that insurance and registration renewal costs will also be lower. Hence, maintaining the inherent expenses of your car will also be more affordable.
There are instances when you may be looking for older vehicles that also have some personal features or touches added to the car. You’re not going to find this in brand new car dealerships. In used dealers, you’ll have so many options. For instance, you may be looking for an older model or a classic car, simply because this is your preference. Walk into used car dealers, and you’ll undoubtedly find a car or two. Plus, personal touches such as accessories and other add-ons may also already be attached to the car.
In relation to the point above, if the car doesn’t already have personal touches added to it, you can also approach the personnel of the used car dealership to have those features added. The great thing about it is that these costs of customization will generally be lower than that of brand new cars. There are even other accessories and features that you can add to yourself.
Second to your home, your car may also be one of the most expensive assets that you’re ever going to have to purchase in your entire life. Buying a brand new car is always nice, but there are just seasons in your life when this isn’t a very prudent choice financially. As you go through all your responsibilities, you have to be wise with your financial decisions. When you have to buy a car, choose instead to purchase an old one. When you do, you’ll be surprised at all the positive benefits that it can bring for you. The list enumerated above comprises only a few.