While a new car comes with a lot of prestige and nothing makes one so happy than the smell of the first-hand automobile, it causes a deep dent on one’s bank account. It may also leave you indebted with some huge monthly loan repayments. However, you could still enjoy driving a car by buying a used one and escape the new car monthly finance bill.
If you take your time to do a thorough search and buy from a reliable seller, you can save a significant amount of purchase price, as well as insurance premiums. Below are some key advantages to buying a used car.
Lower Initial Cost and Less Depreciation
First things first, used cars have a far lower price tag than a new one. You can save a decent amount by looking for your preferred model but of several years earlier. Furthermore, a new car loses quite some value once you drive it out of the selling lot.
The vehicle will continue to lose some significant value at a high rate within its initial years, and it can lose up to 40% by the second year.On the other hand, a used car will lose value at a slower rate after that first phase. A used car is, therefore, somewhat a better investment compared with a new one.
Lower Insurance Premiums and Other Fees
Since the insurance cost of a vehicle is based on its value, it goes without saying that the total insurance cost of a used car will be far less than that of a new one. Consequently, the premiums will also be lower. Besides, tax and registration fees for used vehicles are considerably lower. Used cars also do not attract some hidden costs, such as shipping and clearance costs, that are typically added to the final sticker price of a new car.
More Value for What You Pay
A critical advantage of buying a used car is that you stand to benefit from more upgrades for less cash than if you go for a new car. You could get a higher car with more and advanced features and upgrades, although from a few years back, for the same amount, you could have paid for a lower new vehicle.
It would be prudent to forego the lower end model of a new car and choose a manufacturer’s top-end model but of a used car for nearly the same price. That way, you would get most or all the features you wanted for less money. In cases where you cannot get a used car with the upgrades you want, you could use the amount saved while buying a used car to have aftermarket upgrades and most probably still get better value for your cash at the end of the day.…