A polished and smooth running, the new automobile has caught your eyes.
Are you thinking of buying a car for yourself?
Have you ever thought that a used car may be the right choice for you?
Besides saving money, buying a used car has many other advantages which you should consider.
IN THIS BLOG, I WILL SHARE A COUPLE OF ADVANTAGES THAT HOW BUYING AN OLD CAR IS BENEFICIAL FOR YOU.
CLOSE WATCH,
- PENNY PINCHING
In general, used cars are more affordable than new ones. You will be able to pay off soon for a used car loan as compared to new. According to a study, most car owners change their cars every six years.
Unlike most people, you are daydreaming of buying a luxury car so that you can impress your friends and mates. You can fulfill your ambition by purchasing a used car rather than going for a new one. This helps you in saving money and reselling the car will be a lot easier.
Example – A used 2018 model of Honda CR-V EX-L will cost you around 25,000$ whereas the price of new model is around 40,000$
DON’T YOU LIKE SAVINGS? UM..
Buying a used or second-hand car does not mess with your monthly budget. You can later think of different options like roof racks, sunroofs, rustproof coatings, and these options do not affect the prices. Moreover investing in car accessories enhances your automotive looks.
- LOW DOWN PAYMENTS
If you’re opting for a new vehicle then you will be paying more down payments every month as compared to a used car. You will end up paying more than it is worth. Lower down payments are good for your pocket especially if you are young or have a family to support. Otherwise, unlike most people who end up buying new cars, they have to sacrifice a lot just to pay EMIs.
According to financial expert Ramit Sethi, you can use this formula 20/4/10 rule to check whether you can afford this car or not.
What is the 20/4/10 rule?
It means that you should pay 20% down payment at the time of buying your car, take a 4-year loan and the monthly expenses of maintaining your car should be less than 10% of your monthly income.
ARE YOU GETTING HOW EASY IT IS?
New cars demand regular maintenance, used cars don’t ask you for the same, which provides added peace of mind. You’re saving money, as you need a monthly payment that doesn’t stretch your payments or won’t let you face any financial strain.
A new car will be more expensive than a used car, not only because of prices additionally you are going to pay in other areas too like car accessories, maintenance costs, etc.
- DEPRECIATION, LET SOMEONE ELSE HIT!!
What is depreciation?
Depreciation is nothing but a decrease in the value of assets over time, in this case, your car.
Once your new car is out of the showroom it starts depreciating in value whereas, in the case of old cars, the depreciation rate is very slow. When you sell your old car you will get almost the same amount even after three years. New cars depreciate by 40% in less than 3 years.
So, it’s better to purchase an old one if you don’t want to keep it for a lifetime.
COMPARING MAKE THIS EASY?
You may compare numerous models and select which model you want to opt for. Also, compare prices and then choose the used car dealership that offers you the best price. Try to buy it directly from a private seller then you don’t need to pay any commission to the intermediary and drive home your dream car.
- LOWER ANNUAL REGISTRATION FEES
In numerous cities, the rate of the annual registration fee is based on your car’s value and model year. Generally for the first three years, the rate is quite higher.
You can save yourself from annual registration fees by buying a car that’s at least three years old.
Don’t ever get stuck between buying a used car or a new car. Be pocket-friendly.
FEELING MUCH RELAXED AFTER READING THIS?
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