Here’s Why We Think Buying a Used Car is the Best Option For You
People who think of buying a used car believe there is a stigma attached to it. It is a common belief among many people that used cars don’t look good and are not reliable. If you have decided to purchase a used car, there are a number of ways for you to ensure you get an amazing deal. Most importantly, you must also understand the various reasons why buying a used car can be a smarter option.
Still wondering why buying a used car is a smarter option? Read along and you will realize how you can benefit by purchasing a used car.
Buying A Used Car Will Not Put You In Debt
One does not understand why people need to believe they should have car payments in their monthly budget. People are spending hundreds of dollars every month which is just going towards a debt that never seems to end. You begin to think about buying a new car when the vehicle you are using becomes old. This invariably means you need to renew your debt and continue the cycle of making monthly payments. Just to have the simple privilege of driving you, will be shelling out hundreds of dollars every month throughout your life.
When you consider buying a used car you will spend some time conducting research to find a vehicle that you can purchase by paying cash. This clearly indicates you will have no debt outstanding. One less bill to pay every month will mean some extra savings in your account which you can perhaps use to pay off student loans or credit card debts.
New Cars Do Not Make Good Investments
You may believe that a new car is a good investment but you can be certain you are thinking in the opposite direction. Your brand-new car is likely to lose 30% of its value or more within the initial period of two years. This is because the value will depreciate faster than that of a used car. Despite the depreciation in the value of the vehicle, you will have no opportunities to stop it. You can make all the upgrades you want and maintain it like it was your life. However, you must also understand you will never be able to sell the car for a price higher than the purchase value. If you’re going to lose money, what sense does it make for you also to get into debt?
A Used Car Will Last Just As Long As A New Car
When you decide to buy a used car, you are actually taking advantage of the loss in value which the seller is responsible for. You can come across a number of models manufactured within the last couple of years that look new and perform just as one. Wondering what difference does it make? Remember someone else made the decision of purchasing a new car and has borne the losses which could be 30% or more. You are buying a used car which is not likely to depreciate fast. All you need to do is find a used car which has few miles on it and does not boast of any damages. It will be beneficial for you to choose a vehicle of this type because the value of the car will sink slowly. The used-car itself will continue to be reliable and work efficiently even after its value has probably diminished to the very least.
When Buying A Used Car You Can Find One That Looks Just As New
New cars are not status symbols of any kind and if this is a belief, you are advised to get it off your mind. Not every used-car which is offered for sale looks like it has come from the scrapyard. If the used car you purchased is just a couple of years old and has a good appearance while working efficiently, you can consider it as your status symbol. After all, you are only going to use it for commuting and therefore matters like ‘status’ should not be on your mind when you think about buying a used car.
The Resale Value Of A Used Car Is Better Than a New Car
It is certain you are going to lose money on any car you purchase regardless of whether it is new or old. The only difference lies in the fact that you lose less money when you decide to buy a used car. Remember, when you pay cash for the purchase you are not incurring any interest and therefore the losses are already minimized.
Let’s assume you are buying a used car for $5000. You maintain it properly and drive it around for 8 to 10 years and then decide to sell it for $2500. You are not getting your entire investment back, but imagine what would happen if you had purchased a new car. You would have paid a higher price for the vehicle, interest on the financing and still managed to sell the car for around $2500 or $3000 after driving it around for 8 to 10 years.
The explanation mentioned above should give you enough reasons to rethink your strategy and consider again whether you want to buy a new car or will settle for buying a used car. We are certain you will believe that the smarter option of the two will be in buying a used car.
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