New vehicles will have their merits, and let’s admit – they are easy on the eye and oh-so-appealing. But if you want to be practical with your car purchase, there’s no denying that buying a used vehicle can also give you a great deal. Buying used doesn’t mean you have to settle for a junk heap – not at all. There are many used vehicles these days that have barely been driven and can still give a new car a run for its money. But what else should you be aware of when it comes to the advantages of purchasing a used vehicle? Here are the four distinct benefits of going for a used vehicle: What you should know.
- You can save money
Granted, everyone already knows that used cars are less expensive than new ones. But let’s break it down, shall we? When you opt for a used vehicle, the price of the vehicle may well be 50 percent lower than a new one. Even if you go for a loan, which most of us will do, you will still be able to pay off your loan much more quickly. Most people swap their cars or make a switch after just six years, so think about this: if you pay ten thousand dollars for a used model rather than 20,000 for something new, you could choose to have a nicer vehicle when you purchase one again after a few years. Or you can purchase another used vehicle for ten grand, giving you two cars for the price of one brand new one.
- You no longer have to deal with depreciation
Depreciation can be a real pain, and we all know that vehicles will depreciate. The fact is that as soon as you drive it away from the lot, your brand new car will already depreciate by as much as 11 percent, as confirmed by respected used car Utah dealerships like Young Automotive. And it doesn’t end there – it will continue to depreciate during the entire time you are using it. But if you opt for used, it will already have gone through its major depreciation period, and some vehicles even become more valuable as they age!
- There are no hidden or exaggerated charges
Many new car deals may seem awesome, but many of these deals will often come with hidden charges and insane fees, from shipping fees to dealer preparation fees to destination fees and more. Some models even come with advertising charges that can be up to a thousand dollars. In general, used cars will not come with hidden costs, although you may have to pay a doc charge to the tune of a few hundred.
- You can have a lower premium on insurance
If you get into an accident and have a new vehicle, your insurance will cover the car’s worth during the time of the accident, and this leaves you with a gap in between the vehicle’s price upon purchase and what it is worth. It’s why we have gap insurance, and it covers the difference in the amount you paid for your vehicle and its value upon depreciation. But this will increase your insurance premiums as well. Fortunately, gap insurance is not necessary if you buy used – simply because the car has already depreciated.
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