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It’s likely that your car is one of the most expensive purchases of your entire lifetime. For the majority of people, it rates right up there with buying a new house or even paying for college. A brand-new car is wonderful. It smells fresh, clean, and new. Still, some people prefer to buy a car that’s been gently used.
There are many good reasons to buy a used car instead of a brand-new one, and most of the reasons involve saving money. From less sticker shock to cheaper insurance and less depreciation, sometimes buying a gently used car just makes good sense. Rath Autos Resources NW realizes that every customer’s situation is different. So, if you’re trying to choose between buying a new car or a used one, we are happy to help. These are four reasons to buy a used vehicle.
Slower Depreciation
Many new cars depreciate about 10 percent during the first year of ownership. That’s in addition to the initial “drive-it-of-the lot” depreciation. That can add up quickly. Buying a used car instead of a new one helps you eliminate such rapid depreciation. Sometimes it’s hard to find a 1-year-old car, but often 2 and 3-year-old gently used vehicles are easier to locate.
The Price is Lower
A used car will always initially cost less than a new one. Although it’s a thrill to buy a new car, and we hope everyone will experience it at least once in their lifetime, it’s not unusual for a new car to lose thousands of dollars in value when you drive it off the lot for the first time. This is the reason why you can buy a 2007 Porsche for approximately the price of a 2014 Toyota Camry. Someone probably purchased that brand-new Porsche for over $60,000, but now it costs about half of the original price.
Fewer Sales Tax
Before you buy a new car, don’t forget to calculate the cost of sales tax in your state and county. Some states charge sales tax on new cars but not used ones. Sometimes the cost of sales tax can be thousands of dollars, so look into it ahead of time and budget accordingly.
Lower Insurance Costs
The main determining factor of the cost of car insurance is the replacement value of the vehicle. Since a used car is worth less than a new one, insurance is generally less as well. Also, you can sometimes save even more money by dropping some of the coverage — like collision or theft — once a vehicle’s value declines to a certain point.
Purchasing a car is a big investment. You have a lot of options, and we’re here to help you decide what is right for you. Fortunately, we have a lot of great financing options and a wide array of both new and used cars. So, come into the showroom, have a look around, and take a vehicle or two out for a test drive.
Photo by CC-BY-CarImages | Licensed under cc by-sa 2.0
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