A pre-owned car is a smart buy. Not only is it initially cheaper than its new counterpart, it can save you money over its lifetime. By buying an automobile with a few years behind it, you’re saving yourself money that would otherwise be lost to depreciation, insurance costs, registration fees, and unforeseen maintenance. Check out how buying used can benefit you:
They Are Inexpensive
Pre-owned vehicles cost considerably less than their new counterparts, even when you are comparing similar makes and models in similar condition. And because they are cheaper, you stand a better chance of buying it outright or paying a large percentage of its value as a down-payment. This will save you money that would have otherwise accrued as interest on a loan.
They Hold Their Value
A common problem with new automobiles is they begin to depreciate as soon as you drive off the lot. And they continue to lose their value in the first few years after purchase. Pre-owned cars hold their value year to year remarkably well. It is possible to purchase one and sell it again a few years later for about the same cost.
They Have Been Road-Tested
Although new automobiles undergo rigorous factory testing before ending up at a dealership, there are problems that can arise over the life of a vehicle that this testing cannot predict. You can find lots of invaluable information online about common problems that arise with different makes and models as they are road-tested.
They Cost Less to Insure
One of the key factors in determining the cost of insuring a vehicle is its initial value. Because pre-owned cars sell for less than newer ones, your monthly insurance bill will be lower, and the ability to purchase outright will save you money on your insurance plan, as well. Most states don’t require you to have collision or theft coverage as part of your insurance plan once you own the automobile.
They Cost Less to Register
As with your monthly insurance rate, the fee to register a vehicle is often based on the purchase value. The registration on an expensive vehicle will be much higher than that of a cheaper one. Many states are also attempting to generate more revenue by increasing these registration fees. Buying a more inexpensive vehicle is an effective way to circumvent those increases.
Over the past few years, automobile dependability has increased dramatically. As new innovations in the field of automotive design have increased, the numbers of vehicles sustainable after 150,000 miles or 10 plus years have also increased. The engine, exhaust, and transmission problems that plagued pre-owned cars even a few years ago are now a thing of the past. You can purchase a like-new vehicle with the confidence that it will be dependable and reliable for many years to come. See a car dealer or dealership today to find one that suits your budget and style.