Are you having thoughts on buying a car? Perhaps you have a lot of questions running in your head. But here’s probably the most simple and important question of them all: Should I buy a new car or a used car?
When you’re planning on buying a new car, your expenses doesn’t just end there. There are subsequent costs, depreciation costs, and all other costs that there are. When all the costs are added up, your wasteful investment will cost you thousands of dollars.
A car is the next most expensive investment you’ll make next to your house. It’s important to manage and control your finances responsibly before purchasing a car. Moreover, a new car is an unnecessary expense. Why not buy a used car instead?
We’ve laid down the benefits of buying a used car to help you decide.
Lower price tag
Used cars have lower price tags pinned on them. It’s going to be less expensive as you can see. Your initial costs on a used car will be insignificant compared to buying a new one. According to CNW Marketing Research, their figures show that the average price of a new car was $25,536 in 2008 (before taxes and fees). Now, that same car will be worth around $13,000. That saves you almost half of the original price if you’ve considered a used car.
Sure, used cars also depreciate due to wear and tear over time. But, their depreciation pace is less quick than those of new cars. Typically, new cars depreciate the most during its first three years.
They say that a new car loses a great portion of its value the moment you drive it. Since you’re about to buy a used one, you won’t have to worry about that.
Avoid New Car Fees
Car dealerships charge you for sales tax, preparation, advertising tax, processing, that when all summed up will cost you hundreds of dollars. When you buy from a private seller, you can avoid most of these fees.
The condition of used cars are not usually mint. But most private sellers or car dealerships sell cars that have unblemished exteriors and are in great mechanical shape
If you’re still not confident in buying used cars, you can rely on certification programs. These certified pre-owned programs ensure the cars are in great shape before hitting the market. Used cars undergo the inspection of mechanical performance. This will cost you more than just a used car though, but the higher price is worth it.