When it’s time to purchase a new vehicle, one of the first things you need to think about is whether you are going to buy used or new. Depending on your needs and your budget, either choice can be the right one for you. But here’s a money saving tip, buy used cars if you are confident in your ability to find a good model and you will walk away with a lot of savings. including your payment on your car loan. Here are a few of the advantages of purchasing used vehicles.
The biggest difference between a new vehicle and one that is purchased when slightly used is depreciation. A brand new car has the advantage of being fresh off the assembly line and made to order, so picky buyers will pay much more for these benefits. This means that the rest of us can save a ton of money by purchasing used vehicles that are only a year or two old. Many models of cars lose as much as 40 percent of their value just in that first year, and in general a new car will lose value the moment you drive it off the lot. While the car itself is just as valuable as when you first put the key in the ignition, signing the papers to purchase it means that it can no longer be marketed as a brand new vehicle, therefore it cannot be resold for nearly as much benefit.
Here’s another money saving tip, buy used cars to save on insurance costs. This is especially true if you don’t feel the need to purchase comprehensive coverage on your used vehicle because you have enough in the bank to cover repairs and replacement. Few people have enough money in the bank to replace a brand new vehicle, so comprehensive insurance is a must, and it’s actually required by most lenders to protect their investment.
When purchasing a used vehicle, your choices may be somewhat limited by what’s available on the lot, but that can actually be to your advantage if you have trouble making up your mind. As long as you have the patience to shop around and do your research, you will be sure to find a great used car for a fabulous price and save a lot of money in the process.