According to market research, approximately 40 million used automobiles change hands each year through private-party and dealership sales in the United States. Most people think that they should wait until they have enough money to buy a new one. However, there are many benefits to buying a used car sooner rather than later. Here are some of the top reasons you should buy a used car today!
1. Fewer Taxes and Fees
The majority of states charge sales tax on the total cost of a new vehicle, but not all states have a sales tax on used cars. Some states only charge taxes on the difference between the trade-in value and the purchase price (taxable amount). So, if you live in a state with a sales tax, buying a used car could save you a lot of money.
Another fee to be aware of is the title and registration fee. This is usually a one-time charge assessed by your state when you purchase or transfer ownership of a vehicle. The title fee is generally lower for used cars than new vehicles.
2. Avoid That New-Car Depreciation
As a general rule, vehicles depreciate the most during the first two years of ownership. By buying a used vehicle, you can avoid that initial drop in value and purchase a car for less than it's worth.
Of course, there are exceptions to this rule. For example, luxury vehicles and collector cars tend to appreciate value over time. But if you're not interested in a luxury car or a classic, buying used is the way to go.
3. Lower Insurance Costs
Another main reason people choose to buy a used car is that it costs less to insure than a new car. This is because insurance companies base their rates on the vehicle's replacement value, and a used car is worth less than a new one. In addition, used cars often come with lower deductibles, saving you money if you have to file a claim.
4. Get More Car for Your Money
If you're on a budget, buying a used car is a great way to get more bang for your buck. You can often find a used car with features out of your price range if you are looking at new cars. For example, a used SUV might have third-row seating or leather seats that would be too expensive if you were looking at new models.
From lower taxes and fees to avoiding depreciation, there are many reasons to buy a used car sooner than later. So if you're in the market for a new vehicle, don't wait. Visit us today and take a look at our selection of used cars. You might find the perfect one for you.