Whether you are purchasing your first car or you are a seasoned veteran, you need to make a difficult decision whether to purchase a pre-owned car or a new one. As you know, new vehicles have latest tech features, style, low insurance rates, and the much-loved new vehicle smell. However, are they the best choice for a limited budget? We will share some vital reasons to buy a used car.
Why purchase a used car
This is quite obvious. Purchasing a used car is less expensive as compared to buying the same model of a new car. After purchasing a new car and drive it for a few miles, it is no longer new. In fact, its value drops drastically. After just three years of use, your car is going to be worth 50% less. Doesn’t that hurt?
The truth is that an average price of a used vehicle is far less than of a new vehicle model. This is not the only area of savings. Ideally, you will pay less tax on a used car. Moreover, it is quite affordable to ensure the car. It is necessary to take into account the mileage of the vehicle and the remaining warranty. This is because they will have a serious impact on maintenance costs.
Financing terms and rates
As a result of long-term, low financing rates provided by manufacturers, available dealers can give you attractive monthly installments on new cars. However, do not forget to do your calculations. Even low rates can significantly add up over a 10-year financing term.
Nowadays, most banks provide low interest rates for used cars. In fact, certified used cars offer low rates and have a bonus of extra warranty coverage and the extensive vehicle inspections. This explains why new car advantage has started to fade thanks to excellent used vehicle financing options available.
Vehicle history reports
Probably one of the reasons you are hesitating to purchase a used car is that you are not aware where the vehicle has been. This is quite understandable. Fortunately, there are transparent tools that give you a great idea about the car you are dealing with. Although vehicle history reports do not give out everything about the vehicle, you are likely to get some useful information on essential things such as such:
- Number of past owners
- Damage or accident history
- Past registration status
- Maintenance records and mileage validation