Apart from your home one can be sure that Cars would have been the most expensive purchase one would have ever made. Everyone loves cars and in Japan people are crazy for technology. But there are many who wish to manage their finances responsibly. On account of this there are many who reluctantly come to the conclusion that any new car would be an unnecessary expense to their pockets.
Although you might find overpriced used cars in market and bargains on the brand new vehicles, however it is not the tag, which makes the new car a waste at times. There are other associated fees, cost and depreciation losses that add up to financial losses over first few years of new car purchase. Whereas a used car may be which is 2-3 year old with 20-30k miles on it will certainly help to keep cash in pocket without compromising on quality.
Here are a few advantages of buying old cars over the new ones.
1.Used cars have lower price tag and therefore less depreciation value.
Whenever you drive a new car out of the parking lot the price of the vehicle reduces since it loses its value by a certain percentage. It is an old adage, which most of us are aware of and it stands true till date. This stands out to be the most important aspect, which distinguishes and makes used cars a better bargain for many. In this manner you can opt to buy a 2008 Porsche at the price of 2013 Honda. At the same time the depreciation factor can help you buy a 50000 USD car at nearly half its price within some year of its use. So would anyone love to be the first buyer who loses half the price or become the second buyer who saves that much of amount?
There are a lot of taxes levied on new Car sales. These taxes may differ from State to state and may vary by Country too. But the bottom line remains and that is Taxes on new car sales. These taxes are however not applicable on used cars. Therefore if you are buying a new car the dealers will add all state taxes amounting to a huge sum whereas if you buy a used car you won’t have to pay any such taxes. For those who value their expenditure, research on states laws is very important before taking any such decision.
In many states, registration fees are applicable on new cars purchased. The fee amounts more in the first three years and thereon goes on decreasing, as the vehicle gets old. Since the registration fee is based on the value of vehicle and model year, hence it is always advisable and beneficial to buy a used car, which is 3-5 year old.
4.Extra features cost cheaper on used cars
At many dealer outlets while purchasing a new car the dealer adds on packages like protection film, coating etc. which are a costly affair and do not add value. Whereas when you buy used car you may not get every feature but will have to buy required from outside reseller at a cheaper price if you need them.
Dealers these days add up some crazy shipping charges, dealer preparation and destination charges over above basic cost of car. While buying a used car these things is taken care have and do not exist. Rather you can negotiate or walk away from the old car owner. Since you then know the benefits of used car, the owner may keep you interested at table for negotiation.
New cars may smell good, but at how much cost is the real question to be asked? It’s only about spending some time on research but you may end up saving your precious money by buying a slightly used car, which is in a better condition.