Can You Really Save Money By Buying A Used Car? 3 Reasons To Consider
Whether the car you are currently driving is beginning to require constant repairs or you are ready to add another vehicle for your family to use, you have probably been noticing some enticing incentives on new car purchases. Low or no-interest loans, extended warranty packages and even purchasing options for those with bad credit are popular marketing ploys to convince car shoppers that a new car is the way to go.
But this type of marketing often comes with a lot of fine print that makes smart buyers wonder if purchasing a used car might be a financially smarter decision for their situation. If you are in this position, here are three convincing reasons to ignore the marketing hype for new cars and instead opt to purchase a reliable used car.
Much lower initial purchase price
The biggest difference between a new car and a similar model that is a few years old is the initial purchase price. A new car depreciates at a fast rate for the first few years after the purchase before the value begins to stabilize. A used car of the same make and model as a new one may cost several thousand dollars less by the time it reaches its third birthday, yet it can be just as attractive, reliable, and safe to drive.
Lower insurance premiums
Another way in which buying a used car saves money is the difference in the cost of insurance premiums for a brand new model versus a similar one that is already a few years old. Car insurance premiums are based on the replacement value of the car, should it be in an accident or be stolen, so a used car that is cheaper to purchase than a new one will also be less expensive to insure.
Lower taxes and registration fees
If you live in a state where you pay personal property tax each year, your annual taxes on used cars will be lower than they would on a new model. The initial sales tax required at the time of purchase will also be much lower than the sales tax amount charged on the sale of a new car.
In addition, the annual costs of registration and licensing may also be lower because the assessed value of the older used car is lower than that of a newer model. To learn more about the value and benefits of purchasing a used car for sale, take some time to visit a used car dealership in your area.