A used vehicle is a great alternative to a new one for many drivers. As inflation rates soar in the U.S. to record levels, Americans are experiencing impacts at the grocery store checkout and at the gas pump. According to CNET, the average price of a new car is likely to be close to $45,000 in September 2021, so it would make sense to save some money by buying used.
Buying a used car with acuraoverlandpark.com rather than a new one can save you a lot of money in several ways. Used vehicles cost less based on sticker price alone – but the savings don’t stop there. You will also reach for your wallet less frequently than you would if you drove a brand-new vehicle in terms of fees, insurance, and depreciation.
Used cars aren’t all created equal. Do your homework before you decide if a used car is in good or bad shape. Following that caveat, here are five good reasons to buy a used car.
Although depreciation is an inevitable aspect of driving, a used vehicle offers much less depreciation than a new vehicle. Cars depreciate by about 20 percent when they are driven off the lot. Most cars lose another 10 percent in value during their first year. That’s a loss of 30 percent in value during the first year of ownership.
Your insurance costs are influenced by your age, driving record, credit score, mileage, and location. As with the vehicle’s cost, insurance for a used vehicle tends to be less than for a new vehicle. The value of the vehicle is a key factor in determining the cost of car insurance. As a used car has less value than a newer model, the cost of insurance should be lower.
If your vehicle is older, you may want to consider only liability coverage, if your state permits it, versus comprehensive and collision coverage if your vehicle is newer. Insurance rates are not always consistent, so to save money, be sure to compare rates and research your expected auto insurance cost before driving off the lot.
Similarly, insurance rates for your used car vary by ZIP code, and the fees associated with the purchase of your car vary across the 50 states. Although they are less expensive than the fees associated with a new vehicle, because the cost of the vehicle is lower in the first place. This is especially true for any sales taxes.
In order to prepare for the additional fees that come with used car ownership, check your state’s DMV website for information regarding title tax and registration fees.
Another major benefit of buying a used car is stretching your car-buying dollar. Buying used is more cost-effective than buying a new car. You may not be able to afford this year’s model of a luxury vehicle, but a vehicle that is two or three years old will likely fit your budget better. It’s also important to consider that carmakers are no longer redesigning their models every year, so the tech and style differences may be less noticeable.