When it is time to buy a car, there are many things that you need to take into consideration. The first consideration is whether to buy a new or used car. This is an important decision as it can make a huge difference in your finances over the next several years.
While a slick and new vehicle can capture the attention of many people, sometimes it is more practical to consider used car dealerships in raleigh. Here’s why buying a used car is more practical:
It saves you money
Undoubtedly, a used car will save you money. On average, the prices of used cars are almost 50% lower than new cars. This means you will be able to pay off the car faster saving you financing fees at the end of the day.
You must know that on average, customers switch cars six years after purchase. If you paid $10,000 for a used car instead of a $20,000 for a new one, you can choose a nicer car for your next vehicle or even buy another one if you are up for it.
It has lower depreciation
New cars depreciate easily. In fact, its value starts to depreciate as soon as it is driven off the lot – about 11%. This means that your $20,000 vehicle will be worth only $17,800 once it leaves the lot. It does not stop there because it will continue to depreciate as months and years pass.
In the case of used vehicles, the bulk of the depreciation already occurred. If you buy a used car, it will still depreciate but you will lose less money less quickly. In other words, you will avoid that big hit, which the previous owner already took.
It has no exaggerated fees
There are many deals given in a new car and it might look great at first but there are hidden fees involved like dealer preparation, destination fees, shipping charges and many more. It can be as high as $1,000. As with a used car, you do not expect hidden fees. If there are fees, it will not be as much.
It has lower customization costs
When you consider used cars, you do not have to settle for expensive add-ons. You can install your own at a lower cost. This is a great way to spend the money that you have saved.
It is thoroughly inspected
As a buyer, you need to know that there is such a thing as Certified Pre-owned Vehicles. This is the dealer’s way of ensuring car buyers that their cars are thoroughly inspected, refurbished and certified by the manufacturer or other certifying authority. On top of the assurance, the used car also has an extended warranty and special financing.
It has lower insurance premiums
If you have a new car and you encountered accidents, the insurance will pay for what the car is worth at that time. This is called gap insurance. The good news is that gap insurance is not necessarily applied with a used car since depreciation already happened.
Now that you know top benefits, it is time to go to your nearest dealerships. While you are at it, do not forget to bring your mechanic to help you with the inspection.