For most people their car is the second most expensive thing they buy. Everyone wants a nice brand new car to cherish and call their own. But is buying a buying a brand new car fresh off the lot a good idea? Here I will explain some reasons as to why buying a slightly used car instead might be a better idea. When I say slightly used we are talking cars with less than 30,000 miles on it. That mileage should keep you buying a vehicle that appears to be brand new and with very little problems.
Did you know that some cars lose thousands of dollars of value as soon as you drive it off the lot? This isn’t true for every car but for the most part every car loses some value as soon as it loses its “Brand New” tag. Ultimately it’s functionally the same car it was 10 minutes ago so why wouldn’t you want to be on the better side of that deal?
Sales Tax on New Cars
Not only is a new car going to be more expensive simply because of the fact that it is new but also because you will have to pay sales tax on that new car. In some states if you buy a used car from a private sell you don’t have to pay any sales tax at all! Depending on how much the car costs the sales tax you would save by buying used could be in the thousands. Don’t underestimate how much of a difference that can make and be sure to research your state’s sales tax laws before you decide. More details.
Falling Registration Fees
Most states decide how much you will have to pay in registration fees each year based on your vehicle’s value and model year. Meaning if you buy a car that’s used that a couple years old you could potentially save hundreds if not thousands by avoiding new car registration fees as well as only having to pay a reduced yearly fee as your car is a couple years older.
Nowadays most cars come in a bunch of different packages that have weird names that don’t really mean anything. What it boils down to is that the “Platinum Edition” of that car really only has slightly different rims and some different trim and a better radio. A dealership might try to raise the price of that car by 5-10% because of the package but when you buy used you rarely will even discuss what package the car was. Let alone get charged for a bunch of things you don’t really care for.
This is where a dealership trying to sell a new car will really get you. From $500 anti scratch coatings to shipping charges and “dealer preparation” fees. A dealership will absolutely try to nickle and dime you on a new car purchase. Whereas with a used car purchase generally you will only pay the actual price of the car. Plus with a used car dealers are usually much more accepting to negotiations on the the price of the car.
This is the biggest thing a person would say in support of buying a brand new car. It is brand new so it is in perfect condition. Well the reality is that most modern cars are designed to last well over 100,00 miles. Most dealers have programs that will certify and even offer longer extended warranties for “certified pre-owned” vehicles that ensures that the car you are buying is going to last a long time so you don’t have to worry.
New cars smell great. But how much is that new car smell really worth to you? Hopefully this article helps you make that decision for yourself. There are a bunch of things to consider when buying a used car compared to a new one but I think buying used might just be the better deal. For more information visit: https://www.opalloans.co.uk/blog/the-pros-and-cons-of-debt-consolodation