This article is sponsored by Legend Auto Sales.
With so many choices, it’s easy to get overwhelmed when buying a car
Are you thinking about getting a new car? Your choices on the market are old-new or new-new. Both have their pros and cons. The average American motorist hangs onto a new car for an average of 6.5 years while 12.9% of new-car owners keep their vehicles for a decade or more. You might wonder, why buy a used car when you can get a brand new one? Well, used cars have a lot more to offer than brand new cars. They might not have the brand new car smell, but the benefits of getting a used car weigh heavier.
1. Cut back on depreciation
Keep in mind that the moment you drive a brand new car out of the lot, its value goes down right away. During the first year of use, that new car can lose 10% of its value. Within a year of ownership, you’ve lost about 30% of the new car’s original value. A time will come when you need to resell the car. Considering how much of its value you lose within a year, you should reconsider getting a brand new one. If you want to avoid this big loss, buy a used one-year-old car instead. When you find the right car, you can buy, drive, and sell it with little loss. Often, depreciation flattens out after a car’s second year. The next depreciation dip often followed by the time it turns five years old.
2. Insurance costs for used cars are lower
For many car owners, financing a used car isn’t enough. Car insurance is also a big factor that they consider when they shop for new rides. One thing to note is that the insurance of the car depends on its value. Used cars have less value than new models since, well, they’re already used. Thus, the amount you have to pay for their insurance is also smaller. It might not be too noticeable, but it helps your wallet for sure.
3. You can check vehicle history reports
It’s difficult to buy a car when you don’t know what it’s been through. You don’t want used-car-buying to be a roll of the dice. What if you end up with a ride that’s carrying many hidden problems? Thanks to companies like Carfax and AutoCheck, you can check vehicle history reports. They take note of a car’s vehicle identification number (VIN) and provide reports. Those reports include mileage verification and if an insurance company had declared the car as a total loss. Skip all your worries by checking out those sites before you buy the used car. You can also look into certified pre-owned (CPO) programs. These are the closest you can get to buying a brand new car without having to buy a “used” car.
Photo: CheapFullCoverageAutoInsurance.com
4. Used-car aftermarket communities
Have you ever wondered if there were communities that can help you shop used cars? You’re in luck because the internet has tons of them. Many websites and forums have an aftermarket community for used-car users and buyers. The used-car aftermarket community is one of the most helpful bunches out there. If you have any questions, it’s easier to ask them. They can recommend the best models or tell you which cars to avoid. If you’ve got questions on the mechanical end of the spectrum, they’ll be happy to answer. All you need to do is post on their forums or ask sites. Depending on where you post the question, you can expect an answer within the day at least.
5. There’s more variety
If you look at the models of new cars for sale, you’ll see that there’s not much to choose from. Your choices are very limited, amounting to only around 350 models per year. If you compare that number with the various used car models in the market, you’ll see how it dwarfs in comparison. If your heart’s set on an older model, you might realize that it’s not too available in car retailer stores. If there’s any other place that might have it, it’ll be in the used-cars market. Depending on what you’re looking for, you might need to do a little more work and research. However, chances are your dream car is on the market. Plus, it’s not only used cars that the used-cars market offers. It also has used and customized cars that might fit your style.
6. Reduced registration fees
In the same way that insurance for used cars is cheaper, so are your registration fees. A lot of states increase registration fees to gain more revenue. One way to get around these increases is to buy a used vehicle. Often, older cars will cost less to register. Some states look at a car’s weight or power before they compute for the registration fee. In other states, they charge the same fee, no matter the age, weight, or power of your car. States that follow the age-basis include Montana and Massachusetts. In Massachusetts, the car needs to be at least two years old for a big reduction in the registration fee. Once the car reaches five years old, you can get the lowest registration fee in the state.
7. Get a car worth your money
If you only look at the places that sell brand new cars, you might end up paying for more than you can afford. Whether they have a limited budget, that’s a big no-no for smart buyers. This is where they look into other places to buy cars that may even be worth more than what they paid for. This is where used-cars shops come into the picture. Used cars have not only many attractive financing options. They can also have more equipment, courtesy of their previous owners. Thanks to the depreciation, you can use a bit more of your money on other matters rather than the car only.
Why buy a used car instead of a new one? It’s not only cheaper and better equipped, but it’s also got history reports you can check online. Plus, the market for used cars has more variety, lesser insurance fees, and registration fees.
