Used cars are always going to be less expensive than new ones. If it’s not, you’re getting ripped off. But there are a lot of other aspects besides the down payment that will help you save money in the long run on your used car. Here are just a few:
1. Bigger bargains are available to smart used-car shoppers.
As long as you’re smart about it, and do your research, you will always find better and bigger bargains on used cars. Especially when you buy from the previous owner or car auction. You have the option to pay what it’s worth to you and avoid the annoying, stressful, and time-consuming negotiation process.
2. Less depreciation.
As soon as a new car has been purchased, it is now considered “used,” and has depreciated significantly in value. Unless it is in an accident, the value will not depreciate as much for several years. This is one of the great reasons why people choose to buy used cars. If you end up changing your mind a couple years down the road, you might be able to sell it at a price that is close to the one you bought it for, which is much more than a new car owner can say.
3. Less sales tax.
Typically, buying a used car rather than a new one can save you lots of money on sales tax. Since sales tax is usually determined by the price of a car, buying a cheaper used one will instantly mean less sales tax. Additionally, there are some states that don’t even charge sales tax on used cars, even though they still do on new ones. So you should definitely look into this if you’re thinking about buying a used car.
4. Avoiding sketchy dealer fees.
Car dealerships are well known for their sneakiness when it comes to extra fees. From warranties, to “preparation fees” or “destinations fees,” they will find any way to charge you that extra few bucks and you may not even notice it until you look at your bank statement later on. Buying from a used car owner or auction can save you a lot of money on these unnecessary fees that new car dealers may tell you is a “good deal,” when it’s really just a waste of money.
5. Cheaper features.
New car buyers may have to spend extra money for an additional feature they ask for specifically, such as a built-in navigation system or sunroof, but as a used car buyer, you won’t have to. The add-ons and special features that the previous owner paid for are already there, and included in the price of the car.
6. You could save money on car insurance.
Many car insurance providers offer special benefits on used cars. Make sure to ask them about this before you purchase yours!
7. Current technology has allowed used to cars to be even more reliable than ever before.
Vehicle history reports are easily accessible nowadays. As long as you have the vehicle identification number, you will be able to easily trace its detailed history on a number of different websites. This information will help you to determine its reliability and make a more responsible financial decision about purchasing the used car.
8. Some used cars may still be covered by the manufacturer’s warranty.
This will not apply to every used car, but it’s something to look into if the car is fairly new and in good condition. Be sure to ask the current owner of the car, it could save you a good amount of money on maintenance!
As long as you’re responsible, knowledgeable, put in the right amount of time and effort, and aren’t afraid to ask questions, buying a used car rather than a new one is a much more financially responsible option for almost anyone. Before hitting up your local used car dealership, don’t be afraid to look into alternative places to purchase a used car. There are many different convenient options for this today, including online car auctions!
Good luck and happy car shopping!