Some Benefits of Going with a Second Hand Car Over Brand New
by Kyle Ralph
Why would you want to buy a used car over a new one? Why not go for the one that is in pristine condition straight off the showroom floor? A lot of people ask this, and it's a fair question. So, what are the benefits of going with a second hand car over a brand new one? I'll tell you.
Value. Second hand cars - used cars - are vehicles that were previously owned. As such, they already have miles on the odometer and experienced some wear and tear. So let's talk value - you are actually getting more value out of a used car than you would out of a brand new one. When you buy a new car, it depreciates in value the moment you drive it off the lot. If you go about two years earlier in the model, you can probably get it for half the price - or less - of that new one. Yes, there is still depreciation to be concerned with, but it happens at a much much slower rate than with the new vehicle.
Sales Tax and Registration Fees. You will save on sales tax. Since the amount of sales tax is based on the sale value of the car, you will always pay less with a second hand car than with a new car. For example, in some states if you buy a used car from a private seller, there is no sales tax. Since every state has different rules on this, consult your local DMV for this information. Also, Registration fees are highest for the first three years of a vehicle's life, but it goes down each year until the fifth year, in which it stays at that amount.
Add-ons and Vehicle Condition. Yes, those new cars have all sorts of new features, but did you know that you can get those done by a third party at a much lower price? Also, since modern day cars are built to last for 100,000 miles or more it is a lot easier to find a second hand vehicle that you like that is in fantastic mechanical and cosmetic shape. Also keep in mind that most dealerships provide some sort of warranty plan for certified used vehicles even when you get a car loan online. While there may be a fee for that, you're still saving money.
When it comes down to it you can find a great deal on a second hand vehicle, whether it be from a dealership or a private seller. You might have to spend a little more time looking into your purchase, but if everything checks out, you are saving thousands on purchasing a used vehicle over a new one you can smooth out and speed up the process with Smart Car Finder though. So, if saving as much money is possible on a car purchase is a higher priority for you than say, the new car smell - they have air fresheners for that - it's definitely the way to go.
The benefits of a second hand vehicle
Value. Second hand cars - used cars - are vehicles that were previously owned. As such, they already have miles on the odometer and experienced some wear and tear. So let's talk value - you are actually getting more value out of a used car than you would out of a brand new one. When you buy a new car, it depreciates in value the moment you drive it off the lot. If you go about two years earlier in the model, you can probably get it for half the price - or less - of that new one. Yes, there is still depreciation to be concerned with, but it happens at a much much slower rate than with the new vehicle.
Sales Tax and Registration Fees. You will save on sales tax. Since the amount of sales tax is based on the sale value of the car, you will always pay less with a second hand car than with a new car. For example, in some states if you buy a used car from a private seller, there is no sales tax. Since every state has different rules on this, consult your local DMV for this information. Also, Registration fees are highest for the first three years of a vehicle's life, but it goes down each year until the fifth year, in which it stays at that amount.
Sounds good so far, right? Let me continue.
No Dealer Fees. On new cars, dealers can get away with adding on additional fees such as Destination and Dealer Preparation. They can't do that on second hand cars.Add-ons and Vehicle Condition. Yes, those new cars have all sorts of new features, but did you know that you can get those done by a third party at a much lower price? Also, since modern day cars are built to last for 100,000 miles or more it is a lot easier to find a second hand vehicle that you like that is in fantastic mechanical and cosmetic shape. Also keep in mind that most dealerships provide some sort of warranty plan for certified used vehicles even when you get a car loan online. While there may be a fee for that, you're still saving money.
When it comes down to it you can find a great deal on a second hand vehicle, whether it be from a dealership or a private seller. You might have to spend a little more time looking into your purchase, but if everything checks out, you are saving thousands on purchasing a used vehicle over a new one you can smooth out and speed up the process with Smart Car Finder though. So, if saving as much money is possible on a car purchase is a higher priority for you than say, the new car smell - they have air fresheners for that - it's definitely the way to go.
