Why you should buy a used cars?
1. Less vehicle depreciation
Vehicle depreciation is an inescapable fact of driving, however a used vehicle offers far less depreciation than a new vehicle. New cars often depreciate about 20 percent when they are driven off the lot. And most autos will lose another 10 percent in value within the first year. That’s a loss in value of 30 percent during the initial year of ownership.
A used vehicle depreciates at a significantly slower rate than a new one. This is because once you are behind the wheel of the automobile it would have already undergone its primary depreciation. New automobiles depreciate as soon as they are driven off the lot, but used cars depreciate more gradually, giving you a more consistent loan-to-value ratio.
2. Reduced insurance rates
Insurance charges vary dependent on your age, driving history, credit score, mileage and region. Typically — just as the vehicle will cost less — insurance for a used vehicle tends to be lower than that of a new vehicle. A important aspect in deciding the cost of vehicle insurance is the value of the car. Because an old car has less worth than a newer version, the cost of insurance should be less.
In terms of recommended coverage, if your car is older then you may want to consider liability just if your state permits it, versus adding comprehensive and collision coverage if your vehicle is newer.
3. Lower dealership fees
The expected fees that come with your used car are not the same in all 50 states, just like insurance varies by ZIP code. However, because the cost of the vehicle was lower to begin with, they were less expensive than the costs related to a new vehicle. This is especially true for any sales tax that you may have to pay.
To prepare for the additional fees that come with used vehicle ownership, check your state DMV website for specifics regarding title tax and registration fees and paperwork fees.
4. More peace of mind
In the past, driving secondhand automobiles carried a stigma and many drivers considered it as a risk, but the availability of vehicle history reports has revolutionised this scenario. Drivers now may discover facts about a car’s ownership, accident history, title status, mileage and more.
Before signing off on a used vehicle take advantage of resources from websites like Carfax and AutoCheck to see history data on the vehicle. Based on the car’s vehicle identification number, or VIN, these reports provide an array of valuable information including verification of the mileage and whether the vehicle was ever declared a total loss by an insurance company.
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