There are many factors to consider before purchasing a vehicle. Some people buy a car based on what that car represents. If it’s a luxury vehicle, it’s easy to feel like you’ve made it in life because a nice car is a status symbol. Another reason for choosing a particular vehicle is the amount of money it will cost either monthly or in total. What’s wonderful about buying a pre-owned vehicle is you can get the car of your dreams for a lot less money. There are many advantages of purchasing a pre-owned vehicle and three of them are listed below.
1. Reducing Depreciation
A new car depreciates about 20% the minute you drive it off the parking lot. In fact, it further depreciates by 10% by the time the first year comes to an end. That means a new car is worth 30% less than it was when you first bought it. This is worthy of consideration, especially since most people end up trading in their car or selling it to buy another one. The logical solution for resolving this issue is to buy a car that’s a year old because you can negotiate a price that factors in the depreciation. It’s one of the reasons why it’s difficult to find cars that are just a year old.
If you cannot find a one-year-old car, look for one that’s either two or three years old. The key is to find a good used car that won’t end up costing you money due to expensive repairs. You basically need to look for a car that is no longer depreciating at an accelerated rate. Many experts say that the best way to own a car is to buy it pre-owned and keep it for as long as possible. With that being the case, you should get a car that you really like.
2. Lowering Costs and Fees
One of the biggest costs associated with car ownership is the cost of insurance. The more valuable the car, the higher the cost of insurance. In most cases, a newer car will have higher insurance rates than a used car because it would cost more to replace. There are even some elements of insurance coverage that you may not need. For instance, if you have an old car, you may not need theft coverage if replacing the car is less than what you would pay for theft insurance over a calculated period of time.
You can also reduce registration fees by choosing a pre-owned vehicle since this fee is originally based on the amount of the transaction when you purchased the car. Since you’ll have to register your car annually, you can potentially save money each year.
3. Making a Wise Investment
The thrill of buying a car usually wears off after a period of time has passed. It’s the reason why your focus should be on making a wise investment. If you think about the purpose of a vehicle and how much money you can potentially waste if you buy the wrong one, you’ll come to realize that it’s important to consider all of the different factors before making the final decision. Sometimes a pre-owned vehicle is certified, which means you can find out everything you need to know about the car before you buy it. If it’s certified, there is likely a warranty that covers certain repairs.
Another important consideration before making an investment in a vehicle is the fact that car manufacturers are less likely to change the appearance of their cars every year. That means a pre-owned vehicle will sometimes look just like the newest version. If you’re someone that really wants a brand new car, you’ll come to realize that the perceived value does not align with reality. Choosing a pre-owned vehicle is a decision that you’ll appreciate down the road