If you’re looking into purchasing a new vehicle, you may be having a hard time choosing between purchasing a new or used car. One of the main reasons that people choose to buy a used car is to save money, but you can save money in more than one way than the sticker price at a used car dealership portland or. Cars today are built to last longer than they used to previous decades. While not all used cars are the same and it’s important to check the car’s history and have it looked over by a mechanic, with the proper research a used car can be a great choice for you and your family.
Lower Insurance Rates
The price of car insurance is based on many factors, one of the main ones being how much the car is worth. When you buy a car that is worth less you should be paying less in insurance as well. In addition, once the car has depreciated enough you can save money by dropping parts of the car insurance like collision insurance.
Reduced Depreciation
As soon as you drive a new car off the lot its value is immediately reduced by around 20%. By the end of the first year of ownership, the value will be reduced another 10% meaning that your car will be worth 30% less than what you purchased it for a year ago. While your used car will still depreciate over the years, the drop is usually not nearly as drastic as when you buy a vehicle new.
Reduced Registration Fees
Registration fees are basically the taxes that you are paying for your car. Most of the time these fees are based on what the purchase price for the car was. Registration fees have been increasing in many states in order to raise revenue for different projects and buying a used car at a lower price may help reduce these costs compared to a brand-new car.
Peace of Mind
In the past, many people were hesitant to purchase a new car as they saw it as inheriting someone else’s problems. Fortunately, today there are ways that customers can reduce their risks through vehicle history reports and used car guarantees. People used to see 100,000 miles on the odometer and see the car as having reached the end of its lifespan, but now cars are reaching 200,000 miles and more before being retired to the scrap yard.
Vehicle history reports can provide information like actual mileage and any accident that the vehicle was reported to be in. Some of the companies that can provide this information are CarFax and AutoCheck. For consumers who would like even more peace of mind with their used car purchase, a certified pre-owned car may be the best option. Almost all car manufacturers offer these types of vehicles although the standards may vary from company to company. The guarantees offered for certified pre-owned cars rival those that come with new ones.