Not only do you save money buying a new car on the sale of the vehicle, but you can also save money on auto insurance by buying used compared to new. Insurance rates are determined by many factors including the total cost of the vehicle and because used cars cost less than the newer versions, insurance rates are lower.
NerdWallet crunched some numbers on insurance quotes going back to 2003 for a Toyota Camry. The insurance savings for a used Camry compared to a 2015 model ranged from 6% for a 2014 to 34% for the 2003 version. If you purchased a 2010 model year vehicle or older you’d save more than 20% on auto insurance.
According to NerdWallet – it all boils down to the cost of comprehensive and collision coverage – in the event of a crash your insurance company is responsible for covering the value of the vehicle if it’s damaged or stolen, so a vehicle that is older is worth less and hence the company would pay out less.
Some insurance companies provide discounts for certain features related to safety such as collision-avoidance systems, which are features only found on newer model year vehicles.
Looking for a used vehicle? Use the Instamotor App today!
Not your typical used car salesman. Our team is here to provide honest and transparent advice about car buying and selling.