New cars have that new car smell, the latest advances in automotive technology and less need for maintenance. However, when it’s time to purchase a different car, there are a number of benefits to choosing a used car over a new car.
Lower Price
Buying a used car lets a person get a lot more car for their money. This may mean that a car with all the extras is affordable if purchased used, even though the price to purchase it new may be out of the question. However, there is a downside, as it typically requires a down payment or a trade-in with equity to buy a used car. Dealers sometimes have no-money-down deals to help sell new cars, but this isn’t normally an option with used cars.
Less Depreciation
New cars tend to lose up to 40 percent of their value during the first year after purchase and up to 50 percent of their value by three years of age, with much of this depreciation happening pretty much as soon as it pulls out of the car lot. The Used Cars South Bend IN dealers sell will still depreciate somewhat each year, but the hit isn’t as drastic. The depreciation doesn’t matter as much for people who buy a new car and drive it until it dies, but those who like to regularly switch cars may want to buy relatively new used cars instead of brand new cars to limit the depreciation costs.
Lower Insurance Rates
Buying one of the Used Cars South Bend IN has to offer will also help a person keep their car insurance rates down. New cars tend to have higher insurance rates than older cars. Do a little research to find out which cars cost more to insure in the first place to help limit the risk for sticker shock. Buying car insurance from the same place as home insurance can lead to further discounts.
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