Most people know that buying used cars can be a smart financial move. Many budget gurus preach this advice to their followers. The gurus say that buying new is like throwing money out the window. While most motorists are well aware of the initial savings in the sticker price, there are other savings that they may not be aware of. Here are five ways purchasing a pre-owned vehicle will save cash.
1) The most obvious way used cars are less expensive is because of their out-the-door price. Estimates vary depending on location and vehicle but some say that a driver can save thousands of dollars by buying pre-owned vs. brand new. Being the first owner can be as thrilling as the new car smell, but is it worth it?
2) Insurance will also cost less on a previously owned vehicle, and often by a substantial amount. If the vehicle is purchased for cash, the costs can be brought down even further. By having high deductibles, more money can be saved.
3) Registration fees will also be less costly. There may be hundreds of dollars in savings on registering a pre-owned vehicle versus one fresh off the showroom floor.
4) If a buyer selects an energy efficient pre-owned hybrid vehicle, it can cost less to gas up than some of the newer models that he or she can afford. Some of the gas sippers are quite expensive when purchased new. A wannabe green driver might have to settle for a gas hog if he or she buys new. In used cars, these hybrids and smart autos can be affordable.
5) While the common misconception is that used cars are going to be hard on the repair budget, this isn’t always the case. The newer a vehicle, the more computerized it is. If a driver buys an older model, some of the repairs and maintenance can be handled by a fairly mechanical owner. Brand new vehicles often need a computer guru to find out what’s wrong and fix them.
Most people know that buying used cars is a smart financial decision. While they may be focusing on sticker price differences, there are multiple reasons that buying previously owned autos is a wise step. In addition to saving cash on the out-the-door price, there will be less spent on insurance, registration fees, and sometimes gasoline and repairs. One final outcome of money savings when driving an older model vehicle is that expectations are lowered. If you have a brand new auto, everyone thinks you’re rich and sometimes you’re forced to live up to those expectations.