Why buy a used car? Buying a used car saves you money. It’s that simple. These days, used cars offer reliable transportation for consumers. They last. You can get the miles you need out of them, which means you will get the most for your money. Used cars offer a great value, too. The affordability is a very good way to save dollars, especially for families on a budget. Why buy the same model new car for thousands of dollars more than a used one? There is much to consider when purchasing a car, but ultimately, if you want to save money on that purchase, buying a used car is the way to go. Here are 5 top money-saving benefits for buying a used car and some tips on how to select the right car for you.
1. Lower insurance costs
Car insurance rates are determined, in part, by the value of the car. Therefore, because the value of a used car is far less than a newer version, the cost of insurance for it should be less. More than that, because the car is used, the coverage is much more flexible. Higher deductibles can equal lower premiums.
2. Depreciation is minimized
New cars, on average, lose approximately 20 percent of their value once they are driven off the lot. If that isn’t bad enough, new cars can lose another 10 percent of value over the first year. That’s 30 percent loss in the value of a new car after 12 months. Depreciation is the main culprit in why it’s possible to be upside down on what you owe on the car versus what it’s actually worth for years. Buying a used car in the three to five-year-old range can save money. In that timeframe, the depreciation has flattened out and begins to slowly increase. It’s actually possible to buy a used car, drive it and sell it without losing that much in equity. The most cost-effective way to own a car is to buy a used one and drive until it cannot be driven anymore.
3. Registration fees are lower.
You can’t escape registration fees for cars, but you can beat them down. Similar to car insurance, annual state registration fees for cars are most often determined by the purchase price of the car. As more states consider ways to raise revenues to balance budgets, they have turned to increasing registration fees for cars. It’s seen as a reliable source to generate much-needed revenues for states. We all must pay registration fees when buying a car. Buying used is a solid way to limit how much that fee will be.
4. Getting more car for your money
One of the prime benefits of buying a used car is how far your dollars can be stretched. You can certainly find value in buying a later model quality sedan, minivan, or SUV that fits your budget perfectly. Looking for a particular auto? Cars are rarely redesigned annually anymore. The differences in models year-to-year are negligible. Plus, cars these days last! With regular maintenance, they are running to 200,000 miles easily.
5. Minimized risk
In the old days, buying a used car meant you could be buying someone else’s problems. Fortunately, that is a thing of the past. With companies such as CarFax and AutoCheck, it is impossible to purchase a used car with hidden problems. These companies produce a complete vehicle history report that is based on a car’s VIN, its vehicle identification number. They provide valuable, accurate information from mileage verification to whether the vehicle was ever in an accident or declared a total loss by an insurance company. Many used car dealers offer warranty programs. Auto Action offers the Auto Action Advantage. All cars come with the AAAdvantage Package that includes a warranty, free oil changes, Anti-theft protection, and total loss protection. Buyers can drive away assured and satisfied that they are driving a safe, reliable car.
Finally, with all the information available today on cars at your fingertips, finding and buying the right one can be stress-free. Before buying a used car, do your homework. Decide on what you can afford. Calculate your maximum monthly payment and stick to it. Once you’ve established a price limit, research the kind of car that will fit your transportation needs. Great gas mileage, hauling kids, light or heavy loads, lots of secondary or back road driving, short commutes—all are factors to consider when you shop for a car. No need for sticker shock. There are many online services that give accurate estimates on purchase prices, too, that factor in the mileage, year, and condition of the car.
Auto Action offers a redefined buying experience. There’s a wide selection of affordable used cars featuring some of the most popular makes and models. Auto Action also has a simple loan approval process that allows buyers with good credit, bad credit, or no credit history the opportunity to shop with confidence when purchasing a used car.