When you invest in a used car, you end up saving money. If your goal is to save money, then buying a used car rather than a new car, can be the optimum choice; this is a fundamental way for a family on a budget to save money. Used vehicles can also be of great value and outlets, like used cars in Riverside, sell cars that are in good condition and last for a long time. They tend to remain useful for an extended term.
Although used cars are affordable, you need to be cautious because not all used cars are created equal. As a customer,it’s essential to do your fair share of research and homework before deciding on the model you want to invest in; you need to make sure that it’s in the best shape before shelling out any money.
With that in mind, we have assembled a list of the smartest reasons to purchase a used car:
Generally, new cars tend to depreciate by 20% the moment you have driven off the lot. Many cars tend to lose another 10% in value during the first year. That’s a 30% loss in total during the first year. This means that a $30,000 car can lose its value by $9,000 in value during that period.
So, you can avoid this situation by purchasing a car that is one-year-old. However, used one-year-old cars can be hard to come by; but it’s easier to buy cars that are two or three-year-old cars. Moreover, when you find the right vehicle, it’s possible for the previous owner to have purchased it, drive and sell it with a little loss in equity. Depreciation can flatten out, mostly after a car’s second year when the rate of depreciation dives before increasing around the fifth year.
Reduced Insurance Costs:
The main factor in determining the cost of the car insurance is the value of the car. A used car has less value than a new version, the cost of insurance will be less as well. You can save more money with a used car insurance because some elements can be dropped; for example, you can do away with “Collision and Theft” once the car is old enough, thus saving a good amount of money.
Reduced Registration Fees:
Just like the car insurance, the cost charged by the state to register a car is often based on a the car’s transaction price, and many states have begun to increase the registration fees to generate more revenue. If you purchase a used car, you can stunt the increased registration fees.
Get the Most from Your Investment:
You can stretch the car buying dollar; this is another benefit that comes with buying a used car. You can do more by investing in a used vehicle than a new one. You can’t afford that with a new luxury car that you have dreamt about, but the same car that is two or three years old may fit your budget. You can inquire more details about a used car from used car dealerships like used cars in Riverside.