5 Perks Of Buying A Used Car
Owning a car gives you a whole new level of convenience. It’s the second most expensive purchase you can ever make next to a house. Fortunately, there’s a wide selection of car models you can choose from, which includes both new and old vehicles.
Is owning a new car ideal? While it's good to have a new car, there are things you need to consider before buying one. This includes the fees and costs on top of the base price such as documentation fee, sales tax, and advertising fee among others. For this reason, buying a new car might not be helpful for you, especially if you’re working on a limited budget.
Yet, buying a used car also offers similar satisfaction as having a new one. Read on to discover some perks of buying a used car:
Saves You Money
You can buy a good-quality used car at an affordable price since most used cars on the market are just slightly-used. Buying a used car will save you a big amount of money because these cars are just a fraction of the cost of new models. Looking for a used car can be sometimes tiring and complicated but there are websites that will help you find the best deal easily.
It's always a better bargain to buy slightly-used cars since you won't have to pay for the vehicle registration fee, dealer fee, and destination fee. Also, you won’t have to worry about losing its value due to depreciation; a brand new car depreciates faster than a used car.
Allows You To Enjoy Low Insurance Rates
Unpopular to many, a used car incurs a lower monthly insurance cost than a new car. Therefore, you can save from high insurance costs every month by omitting unnecessary add-ons in your car insurance coverage.
One insurance add-on that you no longer need with a used car is gap insurance since value depreciation already happened. Since it’s not useful anymore, your insurance premium raises as gap insurance covers the difference between the original price of a new vehicle and its depreciated value.
Avoids Hidden Fees
There’s a great deal in every brand new car, however, extra fees are hiding behind the ticket price, such as shipping charges and destination fees. There may also be hidden advertising fees added on top of the original price. Although it’s better to have a car dealer to help you in choosing the best model, negotiating with dealers can be too costly as they usually add more fees to the base price, such as dealer preparations.
But there are no crazy fees like these if you are to buy a used car. You might only have to pay a documentary fee which can cost up to a few hundred dollars—better than splurging thousands of dollars on unnecessary fees.
Makes A Good Investment
From the moment a car is driven off the road, its value has already depreciated. A brand new car will continue to decrease in value for as much as 40% of its original price during the first-year plateau.
Meanwhile, depreciation of a used car is much slower than that of a new vehicle after its first year. Although depreciated in value, there are a lot of slightly-used vehicles for sale, such as Hyundai vehicles and other models that still have good features and are definitely bang for the buck. With cars like these, buying a used car still makes a good investment.
Enables You To Utilize Existing Warranties
Apart from being able to save due to its cheaper cost, a used car also grants existing warranties that you can use for repairs or car part replacement, depending on the coverage.
Some used cars also give you the option to get a new warranty such as an extended manufacturer warranty. This type of warranty can provide you with the fast and reliable services of factory-trained car mechanics, including the fixing and replacing of car parts.
Make The Decision
Your decision, either to buy a new or used car, will depend on your personal preferences and budget. After all, you just have to be certain that you can afford to buy a car and maintain it properly. To know if you’re able to manage to own a car right now, one of the most important ways is to check if you can pay the whole amount within three years. If so, it should be easy for you to handle this new financial responsibility.
Moreover, while these perks can guide you in purchasing a used car, you still have to do more research about your chosen car model and dealer to make sure you get your money’s worth. It's also better to consult a mechanic to check the car for any existing issues, big or small.