Advantages Of Buying A Second Hand Car
Nearly everybody in America needs wheels to get around these days, but for some, there is an ongoing debate over whether to go to with buying a second hand car or truck as opposed to a new model. Here are some of the benefits associated with buying a used or pre-owned car or truck.
Depreciation - Auto experts agree that new cars depreciate instantly on being driven off of the dealer's lot. In fact, some say the normal rate of depreciation is as much as 25%. That means big savings for second hand car buyers, who get their vehicles already discounted and valued by model year.
Sales tax - For states that include auto sales tax in their revenue gathering, a driver can save a lot of money buying used or second hand cars. That's because the auto sales tax is a percentage of the total sale value, or alternately, a percentage of the Blue Book value for that vehicle.
Maintenance - Chances are that if a savvy car shopper looks around enough, he or she will find a next to new or gently pre-owned vehicle maintained by a driver who wants to keep the car in pristine condition for resale. That means that, again, the new car buyer has shouldered much of the cost of keeping the vehicle valuable for the future with specific maintenance packages that cover everything from oil changes to tune-ups.
Lower auto insurance rates - There is also the cost of auto insurance to consider. Your auto insurance rates are tied to the Blue Book value of the vehicle, simply because a more expensive or valuable vehicle takes more money to cover in the event of a claim. That's why a second hand vehicle can incur a lower insurance cost than a new one.
Less liability - Along with the above item on insurance rates, there's also the issue of whether to purchase comprehensive insurance, including coverage for collision, theft, and vandalism. For many drivers, especially those who live in high-risk areas or places with non-guarded street parking, the choice between new and used vehicles is clear. It's easy to shatter a window, scrape a key along the car body, gouge it, or even spray acid onto a paint job. With used vehicles beyond a certain model year, drivers have a lot less to worry about in terms of vandalism or theft liability, or fixing body damage in the event of a crash.
These are just some of the reasons why many drivers opt for buying a second hand car from a dealer's lot. Obviously, income is another main factor. Another general rule is that drivers basically get what they can afford, with only the top tier of the American economy being able to afford new cars. However, the above benefits show that for any driver, buying a pre-owned car is a reasonable way to go.
