When it comes to buying a car there’s an overwhelming amount of choices – whether it be new, used, make, model, and then the hundreds of features to consider. Below are some money-saving reasons to consider a used car:
One of the largest costs associated with buying a new car is depreciation. Depreciation is the value the vehicle loses over time and it varies greatly from car to car, but as a rule of thumb, the average car depreciates at about 15% per year.
TrueCar forecasts that the average transaction price of a new vehicle in 2015 will rise 2.4% to a record $32,589 before taxes and fees. In just three years that vehicle will be worth about $18k, the original owner lost over $14k and will never get that money back. Vehicles typically depreciate the most during the first 3 years.
In most states, the registration fee is based on the value of the vehicle and is highest between years one and three. When you buy a pre-owned vehicle you bank more savings with the DMV.
For the past few years, the auto industry has seen a trend in consumers buying highly contented vehicles, which are vehicles that are packed with a ton of features. Adding additional option packages are driving up the transaction prices of new vehicles. A buyer looking for a pre-owned vehicle will pay much less than the original owner did on these same features, you’ll essentially get more features for the money.
On average older model vehicles have lower insurance rates. The less valuable the vehicle, the less you can expect to pay for coverage.
Buying a fully inspected and mechanically safe vehicle is the most cost-effective purchase. Looking for your next dream car? Check out the listings on Instamotor.
Not your typical used car salesman. Our team is here to provide honest and transparent advice about car buying and selling.