Whether you are exclusively checking used or secondhand-car listings on the Internet or watching an advertisement on the television for a brand-new vehicle model, everyone offers different drawbacks and benefits. To help people decide, we have listed the reasons why you have to be used or pre-owned vehicle.
Let us address the elephant in the room; car value depreciates over time. With a few exceptions, purchasing a brand-new car as an investment is not a good idea. Automobile models are starting to become more durable and last longer and longer, but they still lose value over time.
While some models handle price depreciation better compared to other models, most buyers can expect new vehicles to lose 50% of their initial value within three years of running. There’s a saying, “There is no such thing as a free lunch,” unfortunately, the saying holds true with automobiles. For all its perks that come with the new vehicle (low financing, free maintenance, and warranties), the inevitable depreciation law remains a substantial cost and an excellent reason to buy a pre-owned or used vehicle instead.
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More car for the value of one
It is where shopping for used cars can be a lot of fun compared to budgeting for a new one. Thanks to the value depreciation, your money can get you more from the used car marketplace compared to if you purchase a brand-new car. Your budget may afford you an entry-level or base trim vehicle on the brand-new vehicle market, but if you buy used or secondhand vehicles, the same budget can get you something far better and fancier equipped automobile.
Certified pre-owned alternative
For a lot of shoppers, having warranties to help protect them against the car’s shortcomings is well worth the amount of money they pay for a brand-new automobile. But today, almost every car manufacturer offers some version of a CPO or Certified Pre-Owned program, making used-vehicle purchases a much less problematic endeavor.
Certified Pre-Owned programs differ depending on the automobile manufacturer, and there’s a significant difference between the manufacturer and dealership certified, with the former usually offering a stricter package. Every manufacturer-certified car includes a level of warranty (although the time and mileage covered differ) and oftentimes additional benefits like free loaner vehicle if your automobile needs to go to the shop or free roadside assistance when necessary.
There are a lot of reasons why it is best to buy second hand vehicles, you can visit websites, social media pages and forum sites for more information.
Each year, more or less 400 models are being sold in the brand-new automobile marketplace in the United States, but if the variation is the name of the game, consider used or second hand vehicle market worthy of Wolfgang Puck’s kitchen More or less 400 models might sound like a lot.
Still, the number is dwarfed by the number of models that are available on the secondhand-car dealerships. Every person has a different taste when it comes to cars, and maybe the vehicle you want is not available on the market anymore. The good news is, the second hand market has your back.
There are not many small pickups made today, but the second hand market will provide Chevy S-10s or Ford Ranger. How about the classic hatchback? Chrysler PT Cruisers and Chevy HHRs are readily available. Do you want to own a rear-wheel-drive, V8-powered station wagon with beautiful wood paneling? Well, now you get the whole picture.
Lower insurance cost
Your automobile’s value is the main item most insurance firms consider when determining insurance rates. It makes a lot of sense since the more valuable an automobile, the more money these insurance companies potentially have to spend in case of accidents or wreckage.
Understandably, a Mercedes Benz purchased secondhand will cost a lot less to insure compared to one purchased brand new, and that will depreciate over time. You might not notice the difference between a three-year-old Mercedes Benz from a brand new one, but there is a big chance that the insurance firm will know the difference.
Registration fees are way cheaper
It depends on the state buyers are living in, but older vehicles usually cost less to register. Sure, some areas charge the same registration fee no matter what type of vehicle registration they use, but others differ their cut based on the automobile’s weight, age, and power.
Purchasing second hand will not save you money when it comes to registration if you are living in the state of Missouri, where the registration fee goes up as the horsepower of the automobile goes up, or Illinois, where they treat every car equally to the amount of $100 per year. But there are states like Montana where the registration fee is based on the age of the automobile.
Aside from the registration fees, a lot of states charge a yearly tax, which is also usually based on the age of the car. For example, In Massachusetts, an excise tax is imposed on every vehicle, but the tax is lowered dramatically once the car is two years, it bottoms out after its fifth year.