5 Reason You Should Purchase a Used Car

No doubt about it, purchasing a vehicle is one of the most stress-inducing things in life.  It is a huge financial commitment; you want to make the best decisions regarding your purchase.  When deciding to buy new or used, there are many pros and cons to consider.  Here are a few reasons why a used vehicle might be the best choice for you. 

Price

Used cars are always cheaper than new cars. New cars take a hit on value the moment they are driven off the lot. They lose approximately 20 percent of their value within the first year of ownership. Consider buying the car that you wanted, but a later model. Chances are the vehicle will have the same features, just at a lower cost.

Avoid Depreciation

Once a new car is driven off of the lot, its value drops almost immediately. When you buy a late model, the car’s value has already reached its steepest decline. If you choose to resell it, it will sell for close to the same price that you bought it for, especially if you keep it in good condition.

Certified Pre-Owned Vehicles

Most people are skeptical about buying used cars because they are afraid they will buy a lemon. Certified pre-owned vehicles allow you to purchase a reliable, high-end vehicle at a much lower price. When buying a certified pre-owned vehicle, you are able to experience getting a like-new car.

Not only do you a get high-end model at a great price, but CPO vehicles also offer the following benefits:

• Rigorous safety and performance inspection
• Repaired to like-new car standards
• Includes an extended warranty

Certified Pre-owned vehicles can be a little bit more expensive than your typical used car. But the price is worth it for the additional attention, treatment and peace of mind buyers receive.

Cheaper Insurance

The cost of car insurance varies depending on numerous factors, one key factor being the value of your vehicle.  When buying a reliable, late model vehicle, the vehicle’s insurance will cost less than the newer version. Used car insurance usually costs less because new cars are more likely to be financed and need full coverage. Used car insurance policies offer a more affordable rate.

Reducing Registration Fees

All cars, new or used, are charged money by the state to register the vehicle. Used car’s registration fees are priced lower because they are based on the transaction price and model year.  Registration fees fall a few years after a car is manufactured. The rate for registration fees is generally highest in the first three years, and then levels off after five years. Fees vary by state, but you can save approximately a thousand dollars by avoiding new car registration fees.