A car is undoubtedly a major expense, and it may be one of your most expensive purchases, next only to a new home or a grand vacation. But even as you have your mind set on a new car, it may be worth considering a slightly used model if you want to save money. There are now a plethora of pre-owned cars which are still in very good condition, and they offer some invaluable features and come with some great deals as well.
Also, if you opt for a used car, you may well be able to afford the car make of your dreams (a Mercedes, Audi, BMW, or other) since the car’s price will be cheaper because it has already been used. And keep this in mind: if you go for a new vehicle, you don’t just pay for the actual vehicle itself – you will also have to pay for various fees and other costs as well as think about the car’s depreciation. But if you go for a car that’s slightly used (let’s say, about two to three years old with below 30,000 miles on the odometer), you can get a brilliant deal and save money at the same time. Are you still in doubt? Here’s how you can really save money if you buy a used car.
- A much lower cost and depreciation
You’ve probably heard the saying that new cars lose thousands of dollars in value as soon as you drive them from the car lot. It’s not just a saying – it’s a fact. Think about this: if you buy a Porsche from 2007, it will have a lower price compared to a Honda from 2011. Someone else bought the Porsche for a hefty $50,000, but you can now buy it for a mere $25,000. If you purchase a car that’s about 2 or 3 years old, it will still have depreciated, but you won’t lose money that quickly. It’s a better deal than buying new and seeing the car depreciate by as much as 50% in only a few years, as confirmed by specialists in used cars Utah like Young Automotive.
- Sales tax savings
When you buy a new car, you don’t just pay for the car – you also have to settle the sales tax. Many states issue sales taxes on new cars, but not many states issues sales taxes on used cars. Also, if you have to pay for sales tax on a new car, it can run up to thousands of dollars, and this is a hefty amount. You should do research on your state’s sales tax laws before you buy a car and see if you can save on the sales tax when you buy a used one.
- Lower fees for registration
Many states also offer lower fees for the annual registration of older vehicles. The registration fee or rate is based on the vehicle’s value and its year or model, but many state registration fees are lower if the car is already more than three years old. Once the car reaches five years, the registration fee is lowered even more.
- Save on features and extras
Here’s one thing you should know: dealerships can make a lot of money by adding options and features to the car, such as a pinstripe, anti-rust coating, protective films, and what-not. If you buy a new car, you can easily add these extras when you want, but not many people are aware of this. However, when you buy a used vehicle, you may not get all those extra bells and whistles, but you will not end up paying for features or add-ons that you didn’t really want. Meanwhile, if you do want some extra features on your used car, such as a navigation system or a sunroof, you can easily search for these features when looking for a used car and will pay much less than the car’s original owner.