Although owning a car has its advantages, many consumers are hesitant to buy one because of its expensive price tag. Undeniably, purchasing a brand-new car can take a toll on one’s savings, thus they consider it an unnecessary expense. But, does obtaining a car have to make a hole in your pocket?
Aside from the overwhelming prices of brand new cars, there are also added spending that makes it seem even more wasteful. For instance, you’ll have to worry about the succeeding costs, decrease in value over time, and related fees required for its ownership. These can double up the initial payment, and that’s not a wise move especially if you’re getting a loan from a bank to finance your car.
Luckily, there are more economical ways to get yourself a ride, and that is to buy a second-hand car. Below, we’ll be discussing why buying a used vehicle is advantageous.
Inexpensive Yet Reliable
A study provided by the CNW Marketing Research shows that the price of a brand new car in 2008 amounts to about $25,000, with taxes and additional fees not yet included. Years later, the worth of that same car decreased to $13,000. This proves how the market value of a car quickly depreciates over time. However, you won’t lose as much money if you purchase a second-hand car.
In addition, a brand new car loses its value, amounting to thousands of dollars when it’s already been driven. Hence, second-hand vehicles appear to be a good deal since you won’t lose as much money as the original buyer.
Differences in Condition Are Minimal
Car manufacturers state that cars can last for a minimum of 100,000 miles. Thus, when you buy a pre-owned car, the condition won’t be compromised. Additionally, even though your car is pre-owned, you may still have it enrolled under car insurance so you won’t have to worry much about crippling damage costs.
Some Features in New Cars Are Unnecessary
A lot of dealers purposefully raise the price point by highlighting extra features that aren’t really important. For instance, an anti-glare paint finish, protective film, or some fancy extra accessories. Yet, these add-ons don’t affect resale value at all. With that, buying a used car will help to pay for things you don’t need.
Tricks and Tips
Here are some guidelines that can help you buy a good second-hand car. Choose one that’s only slight-used or has a road life of two to three years with at least 30,000 miles in the gauge. This will also help you avoid registration fees on new cars, as the age of a car directly affects rates of registration in multiple states. Another suggestion is to opt for a second-hand ute or utility vehicle since it is more practical for its suitability in all types of usage.
New cars offer great perks, but opting for a second-hand vehicle is a better decision in terms of managing personal finance. In addition, with substantial market research and careful inspection, you can obtain your dream car at a much lesser price.