When it comes time to replace a family vehicle, many people are on the fence about whether to buy a used vehicle or opt for a new car. As far as value and saving money goes, choosing a quality used vehicle can be a great choice. If you plan to replace your current vehicle soon, there are a number of reasons to buy a used car.
More Bang for Your Buck
The make or model of a car that you love may be out of your budget if it's brand new, but buying a vehicle that is a few years old may give you the spending power to get exactly what you want. Buying used may also give you the opportunity to get a vehicle that is fully loaded with a number of useful features, compared to settling for a new car that is just a base model without all of the bells and whistles. Many used car dealerships also offer warranties, so you can buy a used car and still have the peace of mind of knowing that any mechanical problems that may occur are covered for a certain amount of time.
New cars can depreciate quickly, so if you buy a new vehicle its value will drop as soon as you drive it off the lot. On average, a new vehicle loses 19% of its value after just one year. By the time a car is three years old, it is only worth 58% of its original purchase price. Buying a used vehicle that is only a few years old will give you the chance to purchase a car that still has low mileage without having to worry about its value depreciating as quickly as a brand new car.
Lower Auto Insurance Expenses
Auto insurance premiums typically correlate to the value of the car, since a more expensive car costs more to replace in the event of it being totaled in an accident or being stolen. When you buy a quality used car, its value will be less than that of a new car, so you can save a lot of money on your auto insurance premiums.
Less Expensive Registration Costs
Similar to auto insurance rates, most states consider the value of a car when calculation the cost of registering the vehicle and getting yearly tags for your license plate. Choosing a used car over a new car can give you several years of substantial savings when it is time to register your car or renew your tags. For more information, talk to a professional like Miracle Mile Motors.