3 Reasons To Buy A Used Car

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Everyone wishes they could afford the newest and best car on the market, but the truth is that the cost of any new vehicle may be too much for many people. If you need to replace your old vehicle, don't assume that buying new is the best option. There are many benefits of used cars, and with so many reputable dealers offering both new and used cars for sale, you are sure to find one that is perfect. If you still aren't sure if a used car is right for you, check out these three reasons to buy a used car.

They Are Affordable

The biggest benefit of used vehicles is that they are more affordable than new cars simply because they are used and not the newest model. This means you may be able to get a better used car with more features and a higher trim level than if you purchased a similar car new.

Operating costs tend to be lower with used cars, too. One of the biggest operating costs that you'll save on with a used car is insurance. Insurance premiums are based on how much your car is worth and how much it will cost to replace it. Since you paid less for your used car and won't need as much money to replace it, your premiums are usually reduced. Be mindful of gasoline costs, however. Some older cars may not have the same fuel efficiency features as newer models.

You Don't Need Gap Insurance

The price of new cars is often inflated simply because they are new. While the car doesn't immediately lose drastic value the moment you drive it off the lot, it does depreciate quickly. This is because once you've been driving it a while, it loses that new status. The reason new cars are so desired is because buyers can trust they haven't had any hidden accidents or repairs the previous owners did not report. When you purchase a used car, you pay close to the real price of the car, so depreciation is slower and less drastic.

The problem with depreciation in new cars is that the car depreciates faster than your loan. In other words, you may be paying off a loan of $40,000 for the car, but after a year, the car is worth significantly less. If the car is totaled, you get what the car is worth, but you'll still owe the $40,000. This is why many people get gap insurance with new vehicles, increasing the cost of insurance further. With a used car, you don't need gap insurance because your loan is for what the car is actually worth.

You Own the Vehicle

Some people prefer to lease a car instead of purchasing one. When you lease, you pay a monthly bill to use the vehicle. The perk is that you can typically get a nice car for less than what the car payment would be if you purchased it. This is great for people who like to switch cars frequently because when the lease is up, you can choose to buy the car or lease a new one.

If you do buy the car, however, you'll end up paying a lot more overall than the car was worth. Also, while you are leasing the car, you can't claim it as an asset or use it as collateral. Lastly, you must care for the car better than you would your own because you have to return it, unless you decide to buy it. This may mean not eating in the car or keeping your dogs out of the car.

In a perfect world, you could afford the best new car whenever you wanted, but in the meantime, getting a used car is a great alternative because you get more for less. If you are interested in looking at used cars, contact a dealer in your area today. 

23 January 2018