When it comes to purchasing cars, most buyers usually find themselves at crossroads on whether to go for new or used cars. A car is the second biggest investment one can ever make and as such, it only makes sense to go for a quality car that is affordable and suits all your needs. Thus, there are many benefits associated with purchasing a used car contrary to the commonly held misconception that new is always better. The following post seeks to highlight the advantages of buying used cars over a new car.
Buying a used car is less costly than buying a new one. Unless one decides to lease, the initial cost of buying a new car is usually hefty. Most Financial and Lending institutions usually require an upfront 10% down payment on any new car loan before they add. Hence, if one pays a less amount up front, the monthly installments tend to be higher.
The value of a new car sharply depreciates to up to 10% the moment it leaves the showroom. This means the value of $10000 car is worth only $9000 as soon as the rubber meets the road and the depreciation continues as days, weeks, and months pass. Hence, a used car already has faced the bulk of the depreciation which means it will cost less.
Used cars have undergone inspection and certification by the relevant certifying authorities and manufacturers. Buying a used car guarantees one a thoroughly inspected quality car that has met all the standard safety measures. On the other hand, new cars hold no certification only the assurance that they are brand new.
Some brand of used cars still come with the initial warranty while other models may renew the warranty. Typically, these warranties usually the car reaches the 100,000 mark by providing factory trained technicians to handle all issues as well as providing genuine quality parts and service.
Lower annual registration fees
Used cars have lower annual registration fees as compared to their counterparts as the rate of the registration fee is solely based on a car’s model year and value. Thus, one can save a substantial amount of dollars by avoiding the exorbitant registration fees associated with new car models.
No extra fees
New cars usually come with a lot of hidden fees and charges such as destination fees, shipping charges, and even advertising fees that can be as high as $ 500. Fortunately, used cars do not have a lot of hidden costs.