When it comes time to get a new car for yourself, an actual "new car" is most likely not your best bet. Some people insist on only buying brand new cars but they may not realize that they may be throwing their money away just to say they have a "new car." There are many advantages that come along with buying a used car. After you read the following advantages of buying a used car over a new car you may never buy a "new car" again.
Depreciation
Did you know that as soon as you drive your new car off the sales lot your car depreciates in value by thousands of dollars? If you were to buy a new 2010 car in January for $25,000 and then turn it in June of that year for a different car, you will be lucky if you get $16,000 and you have only had it 6 months. This is because car dealerships have to still make money when they sell the used car and when a new buyer sees that a car is used they are not going to pay the original amount of $25,000 even though it was only driven for 6 months.
On the other hand, used cars do not depreciate in value half as quickly as new cars. This is because they are already depreciated before you buy them. If you were to buy a used car for $15,000 and decide to turn it in for another car 6 months later as long as you have taken care of the car, you can most likely get back about $12,000-$13,000 of that money. Would you rather lose almost 40% in value or only about 15-20%?
Used Cars Cost Less
Let's say that you have had your eye on a certain model of a car for awhile now. Instead of running out to your local dealership and buying the new car, you can wait about 1-2 years and probably get that make and model of the car used for almost half of what you would have paid for the used car. Even vehicles that are only used for a year can cost substantially less than a car that has never had an owner yet. If you shop around, you can find some great deals on used cars that you may have never thought you could afford.
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Insurance Rates are less on Used Cars
Since you are required to carry car insurance, why not save some money on that as well? Used cars will cost less than a new car to insure. Also, since used cars less in price, you may not have a car loan, which means you may be able to lessen the amount of insurance that you have on your car. This can be a huge savings in car insurance every year.
Some people like to argue and say that used cars are unsafe or that they should be allowed to get a "new car" every once in awhile. Before you buy any used car, ask for all the facts on the car. Has it had any major repairs or replacements on it? When you buy a used car it can be just as nice as a car off the new car lot. Buying a car that is about 1-2 years old doesn't really differ that much from buying a new car except that you will save tons of money and you won't have to worry about owing more on your car loan than your car is even worth.
Tags:
car,
automotive