Your car is the second most expensive asset you can invest in after your house. While you want to purchase a new car, it is important to be responsible with your finances. A local dealership might be the best place to buy the vehicle you want. It might seem shiny and new, but it may not be within your budget. Are you willing to take on more debt just to buy a new car? Do you know all the additional costs that come with purchasing a new vehicle? We recommend that you consider a second great option, used cars.
There are likely to be many used car dealers in your area. You can find used cars for sale in Naperville. A used car can save you time and money. You can make a great investment in a slightly used car with less than 30,000 miles and a age of around 2 to 3 years. These are the top reasons why a used car is better than a new one:
1. It saves your financial resources
Used cars are generally half the price of new cars. This makes it easier to finance a used car faster than buying a new one. New cars can be expensive and it can be difficult to fit payments into your monthly budget. While the interest rate for financing might be higher than the total interest you will pay over the term of the loan, it will still be lower. Because a used vehicle costs less than a new vehicle, this is because it is more expensive. Monthly payments will be lower if the vehicle is less expensive. A fee may be required for each year of registration, depending on the car’s model year and value. The registration fee is highest for the first 2 to 3 years. You can save several thousand dollars by buying a car at least three years old.
2. It has a lower depreciation
A new vehicle’s value drops in an instant. When you take the vehicle out of the dealership, its value drops 11%. If you buy a vehicle for $25,000, by the time you get home the car’s value will be $22,250. As the vehicle ages, the depreciation continues. You should let the original owner handle the huge depreciation impact when buying a used vehicle. This will save you a lot of money.
3. No Extra Fees
Although a deal on a new car might seem attractive, there are hidden fees associated with many new cars that may shock you. Many dealerships also charge shipping fees and dealer preparation fees. Hidden fees can add up to $1,000 to the price of some new vehicles. Although you are not required to pay any fees when buying a used vehicle, it is possible to end up paying a few hundred dollars to document your purchase.
4. Less Sales Tax
The purchase price of the vehicle determines the amount of sales tax. The cost of the vehicle will determine how much taxes you have to pay. A difference in sales tax between a brand new vehicle and one that is similar could be hundreds of dollars.
Even though there are many companies that offer different vehicles, the only ones you’ll find when you shop for a new car will be those made by recent manufacturers. If you choose to buy a used car, there will be many options available. You can choose from different years, makes, models, and designs. Many of these used cars can be bought within your budget. There are many great used cars available in mint condition like the Chevrolet Cruze for Sale.
6. Fleshed out issues
A second reason to buy a used car, is that many of the problems from the first year are already fixed. No matter what company built the vehicle, there will always be at least one noticeable issue. Certain issues will always arise during the first year after a vehicle is launched. You can save thousands of dollars by choosing a used vehicle instead of paying for costly repairs.
A car is the most expensive thing you will ever purchase so you want to make smart decisions. A new car might seem attractive and affordable to some, but it’s not a wise choice. A new car is not a smart investment if you are trying to manage your finances well. You don’t have to worry about the condition of your used car. Your mechanic can evaluate it or you can opt for certified-used cars which usually come with a longer warranty.
Finally, ask yourself if it’s worth spending thousands of dollars on a brand new car. Look beyond the purchase price and consider the costs involved. This will assist you in making your decision.