Whether it is your first car or the car after that, it is a big decision as it asks for a hefty investment. While buying a car you do have lots of choices in terms of colours, features, design, brand name, type, etc. You may also want to choose as per your need like heavy SUV for adventures, mini truck for small business cargo transportation or just a two-seater for a couple.
Majorly due to the high price of a car, people prefer to buy a used one. But it is not the only advantage. There is a brighter side of buying used cars or trucks.
Around 7 million used cars are sold each year. This is probably the single best argument to convince someone to buy a used car. There are more though, and all the following points are based on how buying a used car is suitable for each and everyone’s need.
New car loses around 20% of its market value, as soon as it is taken out of the showroom. Also, there are only a few cars which could retain more than half of their purchase price after three years; many lose up to two-thirds of their value.
Good for learners
Damaging your own car while learning to drive it, is the biggest fear of novice driver. A second-hand car can help in lowering this stress, though not completely, but to some extent. You can brush up your driving skills on any type of car you feel comfortable with minimum investment possible.
Lower Insurance Costs
Car’s value is one of the factors that are considered by a car insurance company while determining insurance rates. The more valuable a car, the more money they’ll have to pay out when the claim is made. Now, even the costliest cars when purchased used will have a lower cost of insurance.
Along with insurance, the extended factory warranties these days give you a grace period after you purchase a used car. You can enjoy this warranty period.
Cheaper Registration Fees
You may get cheaper registration fees if you own a used car. Though this depends upon the place you live in. For instance, if you live in Missouri, you would be paying according to your car’s horsepower; more the HP, higher the fee. In Illinois, all cars are equally treated (For around $101 per year). Some states, like Montana, charge a registration fees based on a car’s age. Many states, like Massachusetts for instance, would apply yearly taxes amount along registration fee; this tax amount gets reduced once a car completes two years of its age, and gets bottoms out in the car’s fifth year. This further causes less pressure on your wallet.
Buying a used car or truck gives you more financial freedom. You need to prepare yourself before you put yourself up in any deal. Just choose the source of purchasing a used car – dealer, independent garage, trader or private vendor or from auction or an online store. You can save yourself any future trouble if you work comprehensively over your buying a used car checklist. The list can cover under-the-bonnet checks, accident damage checks, documents checks, MOT & service history, car history and a complete test drive checklist.