Buy A Used Car Today!

Advantages Of Buying Used Cars Based On The Rate Of Depreciation

Out with the old, and in with the new. This is not the case with cars. Vehicles are huge expenses. It is important to do a little research on depreciation rates before going forward with the purchase of an automobile. Depreciation is what will happen to a car with each day and mile that goes by. Unfortunately, cars are not the type of investment where there is potential to profit from it – but rather, its value will gradually decline. By choosing to buy a used car, the previous owner takes the most significant hit with the steepest decline.This will take place in the early years of a car’s life. With this in mind, it is obvious the advantages of a used car gravely outweigh those of a new one. Here are a couple things to keep in mind if you are still on the fence with whether you should go with a new or used car:

Cost

The obvious advantage of going with a previously owned car over a new one is that the cost is cut by a tremendous amount. The sad truth is, new cars will begin to lose value right from the very moment you are driving it home from the dealership. Choosing a used car allows you to avoid the significant decline in value that will occur in the first few years. The money that you end up saving can be used towards your budget for a used car that will cost a little more.

Depreciation

All new cars typically lose up to 50% of their market value within the first 3 years. These numbers will vary depending on the model and make of the car. The depreciation rate does not always depend on its quality or performance, but its resell value. Resell value would be determined by factors such as its overall popularity (demand), the supply of the model that is still available, and its generation.

Insurance Rates

You will end up saving money from avoiding the initial decline in value and the continued depreciation of the vehicle. But that’s not it. Owners of previously owned vehicles can expect to pay less on insurance as well. Fun fact: it will even cost less to insure a used version of the same vehicle.

There Are More Options Available

When shopping for a new vehicle, the current selection can seem rather limited. When you choose to go with a used car, you will open yourself up to an endless amount of options. You will be able to shop older models which will grant you access to a particular model, make, or design that you have in mind. This wider selection will allow you to find the perfect car for yourself.