If you need a vehicle fast, then you’re probably thinking about purchasing a new or a pre-owned vehicle. Most car experts would lean towards buying a pre-owned car depending on a person’s financial status. This is because pre-owned vehicles are much lower in price and are easier to maintain, so you won’t have to put a dent in your pocketbook. There are also six more reasons why purchasing a pre-owned vehicle is better than buying a new one and this is how to manage your car expenses in your budget.
You’ll Save Money
Purchasing a used car is a lot cheaper than buying a new car. For instance, most pre-owned cars are 50 per cent cheaper, and you’re able to pay off the loan faster than you would for a new vehicle. Also, you don’t have to pay extra financing fees that you would with a new car. When you buy a new car, you’ll spend $20,000 to $30,000 on it. However, if you buy a pre-owned vehicle, you’re only going to spend $10,000 to $15,000, which saves you a lot of money and allows you to buy two cars instead of one.
Pre-owned Vehicles Have Moderate Depreciation
New cars lose the dollars in value once you drive them off the lot. A pre-owned car will depreciate, but not by much; this comes in handy when bargaining with a car dealer on the price. For example, a brand new 2016 Lexus IS 350 cost $49,000 before taxes. Now, the vehicle costs $30,000. Because pre-owned cars last longer and are in great condition these days, waiting just four years to buy it will save you $19,000.
Pre-owned Cars are Still in Good Condition
Car manufacturers are now making their vehicles last longer than ten years. However, if you would like a pre-owned car that is about five years old, then there are plenty of pre-owned certified dealerships you can go to and not worry about the vehicle falling apart once you leave the lot. Most of the time, you can find used cars that are in excellent mechanical condition and free of scratches or dents.
Smaller Registration Fees
The one benefit of having a pre-owned vehicle is that your annual registration fees are low. The cost of annual registration fees depends on the model and the value of your vehicle. For example, in some Colorado counties, the registration fees depend on the type of vehicle and the empty weight of the vehicle.
Also, the fees are expensive for the first three years of owning a new car. Therefore, getting a used car will help you avoid spending and hundreds and even thousands of dollars on registration fees during the ownership of a vehicle.
Inexpensive Car Insurance
Not only do insurance companies base the price of a premium on your age, gender, and the zip code you live in, but it takes into account the age of your vehicle. The newer the car, the more expensive its insurance premium will be. Also, if you get into an accident with your new car, expect the premium to skyrocket.
This is where having a pre-owned vehicle comes in handy. The insurance will be low because of the depreciation of the car, so any repairs caused by an accident or car maintenance will be cheap.
You’ll Need and Use Your Warranty.
On average, new car buyers keep their cars between 6 to 8 years, then turn it into the dealer for a new one. This pattern does not allow the car buyer to use the warranty because with most new cars they are in perfect shape and need little maintenance.
However, if you purchase a pre-owned car, then you’re more than likely going to need the perks of owning a warranty. For example, one couple purchased a pre-owned truck and was able to extend the manufacturer’s warranty. A few months after their purchase, they needed a new part for their truck and were able to get it replaced by a quality factory technician without coming out of pocket for it because they had their warranty.