Should you buy new or used? There are many good reasons to buy a used car but affordability is the the biggest attraction for used-car buyers. Buying a used car can save you money while enjoying quality transportation for many years.
Purchase Price
The biggest advantage to buying used is the cost savings. A used car is going to be less expensive than a new car.Depreciation Cost
New cars depreciate heavily during the first three years of ownership. When buying used, you're letting the original owner absorb most of the depreciation cost.Insurance Fees
The other advantage is that you will typically have to pay less for insurance. As cars get older, they're simply cheaper to insure.Sales Tax
Many state laws subject new cars to state sales tax, but not used cars. You won’t owe any sales tax at all.Registration Fees
In most states, the rate of your annual registration fee is based on your car’s value and its model year. You can save about a thousand dollars by avoiding the new car registration fees and buying a car that’s at least three, or better yet five, years old.Customization Costs
You don’t have to settle for expensive dealership add-ons when buying a used car. You may install your own at a lower cost than on a new car.Before buying a used car, do your research, compare dealerships and be aware of the car's market value to avoid buying a lemon.
