The idea of buying a new car is exciting. But isn’t it the same feeling when you can save thousands of dollars buying a used car? There are many perks of buying an old car other than this. Here are six reasons why you should go for old cars than new ones.
1. Less Expensive
Used cars save thousands of dollars. There are many less used cars which are in perfect condition that is available in the market to buy. Even if you do not get a very satisfactory product because of your lesser budget, you can always buy parts from scrap cars for cash in Auckland. There is a huge range of cars to select from and you can get it all at cheaper rates. Getting a used car can be made better with these parts. The statistics say if you sell your new car in a duration of 3 years of buying it, you won’t be able to get even 54% of what you have actually paid for it. The new cars depreciate very quickly than old cars. Some cars like Toyota FJ Cruiser are exceptions to this case. They get far greater than other cars.
2. Low depreciation rate
Unlike new cars which are getting released in the market, old cars have more life span. Their depreciation rate is comparatively lesser than new cars. According to current depreciation rates, a new car can lose 20% percent of its original value in the first year itself. After that, 15% each year after year. This can round up to a car having no resale value after 10 years of buying it. This leads to heavy loss for top business companies.
The automobile industry has come up with the claim that, unlike the 70s when cars used to get rusted easily, new cars have a longer life. In 2015, the average age of a car running in American roads was 11.5 and by 2020 it is expected to be more than 13 years. Thus, all the used cars have a longer life. You can save thousands on these vehicles and still expect it to run smoothly for years.
4. Favourable financing rates
One major benefit of choosing used cars over new ones is the convenient rates for otherwise expensive procedures like registration and insurance. Depending on the year of the model, there is a steady decrease in insurance rates. Even registering a used car is not as expensive as registering a new one. The same applies to the sales tax after the first 5 years. This can save a lot of money which can be used for the maintenance of your vehicle. Even with all the money you can save a premium high class car upgrade. Many automobile companies give attractive deals on financing their used cars in CPO programs.
5. Cheap luxury add ons
New cars come up with many unnecessary luxury add ons like anti-rust coatings and protective strips. When you buy old cars they don’t come with these. You can get the same luxury accessories at cheaper rates when you buy it individually. You can use the facilities which give cash for scrap cars which do this type of dealings. If you were looking for things like a sunroof, it is beneficial because you pay very less compared to the first owner of the vehicle to get it in your car.
Automobile companies with pre-owned cars outlets usually give warranty to their used cars. The duration and mileage limitations will be there but they give almost perfectly repaired cars with no or zero damages. This warranty period allows you to get a car in better condition if you find any fault with the one you purchased. You can also skip agreeing to whatever the dealer can offer you and paying the sticker price. You can always negotiate and get a much better deal on the car.
These are some major benefits you can avail by purchasing a used car than a brand new one even though they are much safer and reliable on roads.