Apart from a house, a car will probably the purchase you will ever spend the most money on. Everyone loves the smell of a new car, the polished look and an interior that is in the best condition you will ever see it. But do these small joys worth the extra price?
When it comes to deciding how you are going to buy your car, you are presented with two options, you can either buy it new, or you can do a little research and find a used car at half the price. Sure, you may find a discount a new one at discount but even then, after a couple of years the car will lose in value. Add any additional costs and the fees associated with the purchase and you may end up paying hundreds if not a few thousand dollar for nothing. It gets even worse if you took a loan to buy your car and it gets upside down.
On the contrary, buying a slightly used vehicle that has less than 30,000km and is a couple of years old, you will not be wasting any extra money and it will be worth its value. Here are 5 big benefits from buying a used car.
- Lower Price, Lower Depreciation
Either you know it or not, your car takes a huge blow to its value as soon as you get in and drive it out of the dealership. Even wondered how a 5 year old Porsche can cost as much as a new last years Honda? The owner could have bought it for 50,000 dollars and 5 years later you can take it from his hands for $25,000.
On average a new car back in 2008 could be yours for 25,500 dollars, excluding the taxes and extra fees. This year it would be worth about 13,000 bucks. The first owner seemingly lost 12,500 bucks or the buyer after him who will save that amount? Even vehicles 2-3 years old will still depreciate, however the loss will not be as big.
- The New Car’s Sale Tax
This one fairly straightforward. When you are looking at a new car’s price tag, they don’t usually include the sales tax. On the other hand, in some countries you can buy a used car from a private dealer without having to pay the extra few thousands. Do some research before you make any decisions and see what laws can help you save money.
- Useless Extra vs Cheaper Features
In order to pass a “better deal” some dealers will install additional features that you either don’t need or want, or you could buy them at a lower price later on. Best part of it is, most of them don’t add anything to the car’s total resale value. When you are buying a used car, you not get all the features you would want it to have, but at least you will not be paying anything extra for the ones you didn’t want anyway.
If you however want to find a vehicle with specific features installed, like a navigation system or a sunroof, you will find them at prices far lower than the ones the first owner had to pay.
- Less Useless Fees
Even if you believe everything the dealer has to tell you, including how amazing is the “rust protective coating for only $500”, there are some fees that can only reduce the owner’s bank account balance. Why should you pay destination fees, dealer preparation, and shipping fees, if you are buying it from the dealership and picking it up from there? When you are buying a second-hand car, you don’t have to pay anything extra other than the usual, registration fee, tag and title.
- Built to Last
Most of the cars nowadays are manufactured to last at least 120,000km without showing any serious problems. If you are a mechanic or have at least a basic knowledge about car mechanics, then you may be lucky enough to find a car in a near new condition.
Those where just a few points to consider if you are planning to buy a car. Whether you go for a new car or a Used Cars, consider the purchase as if you would be buying a house. You will be more careful and less likely to take risks.