Other than your home, your car might be the most important purchase you ever make. And while it may be tempting to buy a brand-new car, a used car can help you keep cash in your pocket without sacrificing quality. Below are the top benefits of buying a used car over a brand new one.
The lower the price tag, the less depreciation
We’re sure you’ve heard it before — a new car loses thousands of dollars in value the second you drive it off the lot. It’s true, and it’s why used cars are simply better bargains. Buying used gives you more bang for your buck and you avoid the big initial loss from buying brand new.
New cars come with expensive sales tax
Many state laws apply a hefty sales tax on new cars but not used cars. And often, that sales tax can add thousands of dollars on top of the sticker price. Be sure to research your state’s laws on car sales tax before you make a decision.
New cars have higher registration fees
In most states, the rate of your annual registration fee is based on your car’s value and its model year. Registration rates are highest in the first three years of the car’s life and then will level off after five years. In other words, based on your state’s regulations, you could save about a thousand dollars on fees just by buying a car that’s at least three years old.
New cars usually come with extras you don’t need — and shouldn’t pay for
New cars usually come with additional dealer options, like a pinstripe or an anti-rust coating that you don’t need. On the other hand, when you search for special features that you do want in a used car, like a sunroof or navigation system, you’ll pay much less than the original owner did.
New cars come with extra fees
Buying a new car can cost a lot more than what the sticker on the window says. Dealers often hit new car buyers with other fees, like shipping charges, destination fees, and a general “dealer preparation” fee. When you buy a used car, however, those fees aren’t applied. You’ll usually just need to visit the DMV to pay for the tags, title and registration fees.
New isn’t always better
Brand new isn’t necessarily better anymore. Nowadays, cars are built to last for at least 100,000 miles, meaning you really don’t have to sacrifice reliability and safety just to get a good deal on a used car. And for peace of mind, every used car at the Auto Connection comes with a free AutoCheck Report!
Used cars come with lower insurance costs
The value of your car is the main factor the insurance company uses to determine your monthly rate. That makes sense; the more valuable a car, the more money they’ll potentially have to pay in case something happens to it. And so while a 3 year-old BMW isn’t really that different to you, it’s definitely different to the insurance company.
Used cars are better for the environment
Fun fact: Nearly a quarter of the carbon dioxide that a vehicle produces during its life-cycle is emitted during manufacturing and initial shipment. So, buying a used car actually reduces the carbon dioxide output into the environment!
Are you in the market for a reliable used vehicle? As a premier buy here, pay here dealership in Hampton Roads, The Auto Connection helps people in Virginia Beach, Norfolk, Portsmouth, Richmond, Eastern Shore, Smithfield, Chesapeake and Newport News, VA get the financing they need to drive away in a quality used car, truck, SUV or van. Find out how easy it is to get a quality pre-owned vehicle of your own with buy here, pay here financing from The Auto Connection.
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