Buying a used car is a fantastic way to save money and cut costs. Purchasing used is a very popular method as three out of four automotive transactions in the United States involve used cars for sale with silver being the most popular color of car. Considering the average vehicle will have three owners in its lifetime, buying used is not something to be wary of. Here are some great reasons to buy used cars.
Depreciation
New cars immediately depreciate in value 20% the minute they are driven off of the car lot. Additionally, they loose another 10% in value during their first year totaling a 30% loss in the first 12 months of having it! A way to minimize depreciation is to buy an used car that is a year old, and you will save 10%! This can amount to thousands of dollars in your pocket at the end of the year.
Also, when buying your used car you can resell it with little loss in equity because depreciation flat lines after two years.
Save on insurance and registration
Investing in car insurance is a crucial step in servicing your vehicle. Problem is, it can be expensive. An easy way to get around this is to buy a used car that is valued less than a newer one, so your car insurance premium will be lower!
The same goes with your vehicle’s registration. Many states are increasing registration fees as a way to bring in more money, and the fee is based on the transaction price of your car. So buying used will bring the price down in all aspects!
Get more than you give
Typically, the standard for cars was that they would on average last about 100,000 miles. But nowadays, people are driving them until they die, and averaging about 200,000 miles in the process. This is like getting a second life out of your car, a car that you didn’t even pay full price for! Besides general auto service, buying used will be an investment into your car for years to come!
So what are you waiting for? Buy used today!