How Buying a Used Car Helps Your Finances
It’s no secret that you can definitely save money buying a used car. But you may not be aware of the all the different ways that buying used can help your finances. The first way it can help is the most obvious – used cars are just not as expensive as new! But you knew that. Here are some other ways that a used car can be a friend to your wallet.
Buying a used car means you will save piles of money in several areas.
- Less depreciation.
As soon as you drive a new car off the car dealer’s lot, it loses about 20 percent of its value. During the first year of ownership, it will lose another 10 percent. So, if you buy a used car that is, say, a year or two old, you avoid that big hit in the car’s value. The car’s depreciation is fairly minimal until you hit year five. If you want to sell your car, you may be able to get a lot closer to what you paid for it than if you bought it new.
- Lower insurance costs.
Another way that a used car can help finances is because of lower insurance costs. The price of insurance is determined by the value of the car, and so insurance will cost you less on a used than on a new car.
Also, if the car is old enough, there could be things you may not want to insure at all — damage from collision or theft, for example. At a certain point, it may not be worth spending a lot of money on repairs.
- Lower registration fees.
As with insurance, the cost to register the car with the state is based on what you paid for it. So, here again, you save money buying used rather than new.
- Making your dollar go further.
You can get more for your money with a used car. For example, there may be a high-end model that is out of your price range new. But, that same car, if it is two, three, or four years old, might fit within your budget. So, your dollars are doing more for you, another good thing for your finances.
Take advantage of the financial benefits of purchasing a good used car by checking out the inventory – either online or at a location near you – at the PAACO Automotive Group. Give us a call at 877-810-4555.