Cash The Checks Personal Finance Blog

5 Benefits Of Buying A Used Car

Oct 16 2011 Spending by 1 comment

Everyone wants a new car. Perhaps it’s because of the new car smell. Maybe it’s to show off. It could be because it’s easier. Who knows. But it’s not the right choice. Buying a used car is better than buying a new car and I’m going to tell you why.

Here are the 5 benefits of buying a used car.

Depreciation

The moment you drive a car off the lot it has lost at least a thousand dollars. Even if you try and sell it the day after you bought it, you will surely lose a few thousand dollars. The first couple of years a car will lose many more thousands of dollars. Yes, the car will continue to drop in price throughout the years, but never as much as the first 2 years. Therefore, buy a car that is at least 2 years old to soften the blow.

Sales tax

When you go buy a new car, the sticker price on a car isn’t your total. That’s just the price to lure you in. This price does not include sales tax. So just imagine adding 8% to a $19,999 price tag. That’s another $1,600. When you buy used for a private seller, you pay no sales tax. How’s that for instant savings.

Fees

Fees on new cars are much greater than fees on used cars. Buying a car at the dealer means you’ll be paying for fees like dealer preparation and advertising fees. There are also countless useless yet expensive add-ons the dealer will want to charge you for on a new car, like rust proofing. Buy from a regular person and you’ll have no hassles and no fees.

Condition

Nowadays, cars are built to last. The thinking behind buying a new car instead of a used car is because new cars last longer. But a used car can last you well over 100,000 miles. So if you buy a different car every 10 years, a well maintained used car can last you 10 years, just as a new one would. People like to switch cars anyway, so keep buying used ones and switch more often.

Negotiation

You stand a better chance at getting a good deal on a used car, rather than a new one. Sometimes the dealer simply cannot lower the price on a car anymore. When you’re dealing with a private seller, there is no limit to how low they can go. If they’re having a hard time selling their car, haven’t received an offer or just want to get it over with, you stand to get a really good deal.

Comments

Sam Moore on 11/15/11

I never buy new because I get bored of the same car after a while anyway, so I buy a different one every 5 years or so.


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