Apart from your home, your car must be one of the most expensive purchases you’ve ever made in your life. Even though you have your dream car in mind, you’ve also got a couple of financial responsibilities you have to consider too. As a result, you tend to look into cheaper, more affordable ways of getting yourself a car. Have you thought of buying a second-hand vehicle instead?
If the idea of it scares you because you worry about its depreciated value compared to a brand new car, maybe you haven’t looked carefully into it yet. When you read about the benefits that come with used vehicles, you’d learn that it is indeed a viable option. If a brand new car is beyond your reach at this point, here are some of the advantages of owning a second hand vehicle.
Cheaper Price Tag means Slower Depreciation
Used cars are a lot cheaper than brand new ones and their value depreciation is slower compared to a brand new one too. When you buy a brand new car and drive it around the city for a week or two, you lose about 15% off its original value.
Sales Tax Are Higher For Brand New Vehicles
When you buy a brand new car, the issue of the sales tax that you have to pay for is often sugar coated, but it is definitely there. However, if you buy a second hand car from its previous owner, you don’t owe any sales tax.
Lower Registration Fees
In most states in the US, car registration fees are dependent on the car model and how much it costs. Usually, the rates are higher in the first three years since the car was bought. If you were lucky to buy a car that’s about four to five years old, you don’t have to worry about increasing registration fees at all.
As if paying for the unit itself is not enough, dealers charge you with almost anything and everything they could think of – shipping, dealer preparation charges and the like. These fees only make buying a brand new car more expensive than everything else. When you are eyeing for a used vehicle, you are in a position where you can negotiate and even haggle if you want to. Just imagine how much more you can save from that.
It can be tempting to buy a new car because they really smell good, but how much of its actual cost are you paying for?