Why Buying A Used Car Is A Smart Idea | Hickory, NC
New cars are already expensive, and adding various fees and accessories only increases the price. That can make the final price you have to pay out of your reach, especially if you’re already on a tight budget. A used car, however, could offer a greater value and allow you to stay under budget.
If you aren’t too fond of that new car smell or price, you’re in luck. Used cars are often thousands of dollars cheaper than their brand-new counterparts thanks to depreciation. While how much a used car differs from a new model varies, the general trend is that used cars are available at a much greater value.
Once a new car leaves the lot under ownership, it immediately loses a large percentage of its value, often up to 40%. The transition from a new to used car can cost you thousands and could cause you to owe more than what the car is worth.
Did you know that insurance companies charge higher rates to insure a brand new vehicle compared to a used model? To make matters worse, many financial institutions require you to have a specific amount of coverage (or more), which means there’s no skimping on insurance.
While financial institutions will still require a certain amount of coverage on a financed used vehicle, the rate won’t be nearly as high. Since a used car costs less to replace, it costs less to insure, a factor that can save hundreds, or even thousands, of dollars per year.
It’s no secret there’s a limited amount of new models available each year. That limited selection can make finding a specific make, model, and package particularly difficult, but that’s where used vehicles are advantageous.
Since a used vehicle is literally any vehicle that isn’t brand new, there’s a much larger pool to choose from. You could even find a vehicle that’s discontinued, a package that isn’t offered, or a limited edition style that’s no longer available.