Everyone loves new cars. What we don’t love is how much we have to pay for them—we also have to pay dealer fees, sales tax, high insurance premiums. And you better pray you don’t get hit within the first two years because repair fees and replacement services will give you nightmares.
Does this mean we can’t enjoy new cars? Of course not; they just don’t have to be new. Make no mistake though, some used cars are as good as new if you know what to look for. A used car is the best option if you want a quality car without the high price tag. So before throwing thousands of dollars at a dealership for that sweet new Corolla, consider some of the reasons why you should throw it at used cars for sale ad instead.
It’s no secret that cars decrease in value immediately you drive them off the lot, and they keep decreasing for the next two years. This depreciation is so rapid that your new car could lose 20 percent of its value as soon as you buy it, and by the end of the first year, it would have lost 30 percent in value. Your $50000 car would be worth $35000 at the end of year one, whether you drive it or not.
Guess who benefits when you sell that new car? The person who buys the used car. Depreciation rates for cars over four years old are under 20 percent, much less than their new counterparts.
You don’t only get a better deal on depreciation when it comes to used cars, you also get a great deal on price. Remember that a new car can drop in value by 30 percent after the first year of use, and used cars are typically cars that are above four years (although this isn’t an enforced rule), hence, anyone purchasing a used car literally saves thousands. If you are buying a used car above four years, make sure that the mileage is not above 30,000.
Also, with new cars, there are a lot of hidden fees and high dealer markups. A dealer can mark up the price of a new car up to 45 percent from its base wholesale price, and that excludes processing fees. Note that we’re not talking about sales tax, documentation fee, and DMV fee—these are compulsory and are common to both used and new cars. What you should be on the lookout for are obscure fees like advertising fees, handling fees, etc.
Lower Insurance Premiums
Insurance companies love new car buyers, but the love is often not mutual. Insurance companies are known to charge higher premiums for new cars because they take the current value of the car into consideration when calculating quotes. Although there are other factors involved in calculating your premium, used cars always have lower premiums.
Cheaper Add-Ons and Repairs
New car dealerships are fond of including add-ons that you don’t really need but are expensive ($500 for rust protection?), and you’d have to pay top dollar to get the ones that you actually need. Also, repairs on new cars can cost a lot of money, especially new models.
Repairs and add ons for used cars are much cheaper—you can get a car repair estimate here. Imagine if you crack the windshield of your new car, how worried would you be? Some repair shops charge an arm and a leg. But that price comes down when its a used car.
If you live in Orlando, you can get a good deal on the repair of a cracked windshield at an Orlando auto glass replacement store called Orange Blossom. They have on-ground technicians that immediately repair or replace your auto glass at the best price in the market.
Every used car buyer worries about the quality of the engine. Nobody wants to buy an affordable piece of junk. That is why manufacturers and dealerships run certification programs. These programs ensure that you buy reliable cars. Certified preowned cars usually come with a stamp or seal of certification, you should look out for that when buying one.