If you are shopping for a new car and are stunned by the sticker prices, you might take comfort in the fact that you’re not alone. Inflation remains a hot topic in economics these days, and most people can’t afford to drop tens of thousands of dollars on a vehicle. Even if you have stellar credit and plenty of cash on hand, you might think it’s a bit ridiculous to fork out the amount of money it will take to purchase your dream automobile. Don’t give up on your dream, however. Just switch your mindset. There are or truck rather than a used one.
The first advantage is obvious: Your used car will cost less than a new version of the same model. Dealers automatically drop the sticker price due to mileage, because the vehicle immediately loses value once it’s driven off the lot. You could save thousands of dollars if you opt to purchase a used vehicle yet you won’t lose face. Automobile dealers understand the importance of offering their customers affordable options that don’t look as if they were just driven off a junk lot, and they certify pre-owned vehicles to be as good as new. You can pay less for a beautiful and reliable vehicle if you buy used.
Reduce Your Insurance Costs
Another advantage when you buy a used car as opposed to a new one is your insurance rates. Sure, you could purchase a brand new Mercedes and drive proudly down the street, the envy of all who see you, but can you afford to insure it? What you cannot afford to do is go without insurance. If you fail to insure your vehicle, you risk losing it and your license should you get into an accident. As with mileage on the new car – the more miles the cheaper the price – insurance companies understand the less value the car holds the less it costs them to insure it. This translates into savings on your premium payments.
Reduce Your Registration Costs
If you live in California or another value-based state, you know how much vehicle registration can punch a hole in your finances. Depending on what you drive and how new it is, you could pay $400 or more to keep your vehicle licensed and on the road. Yes, getting the car you want is extremely important. You want to enjoy the vehicle, be able to rely on it, and keep it for a long time, but you must take this expense into account while car shopping. You can’t drive an unregistered car any more than you can drive an uninsured car, and a used car costs less to register in any value-based state.
Get a Better Car
What if you could purchase an Infinity instead of Nissan, a Lexus instead of a Honda, and so on? If you shop around, you might be able to. When you purchase used, you open the door luxury and sport models. As with any other vehicle, these cars depreciate in value over time, which translates to an affordable sticker price on the certified used lot. Many people find and get into the car of their dreams with only one caveat: It isn’t brand new. Why buy a brand new economy car when you can buy a used luxury car. Consider pre-owned to reduce the price and get it into your ballpark. Even if you don’t want luxury or sport, you might find a better vehicle with more bells and whistles on the used lot.
Stay Within Your Budget Easily
Finally, when you buy used you stay within your budget easily, which is crucial to your future financial health. Vehicle financing shows up on your credit report, which means it directly affects your overall score. If you cannot afford the car you buy, you risk financial disaster, especially if the car is repossessed. Don’t take any chances with your credit; purchase used to ensure the sticker price and financing costs stay within your budget. You might love the car at first, but you’ll end up hating it if you cannot afford it.
If you still don’t believe used can be better than new, head to your local dealer and browse the pre-owned lot. You’ll be surprised how many nice and not-so-old vehicles you find, especially with so many people leasing their cars and trucks instead of owning them. Used oftentimes works better for most.