The value of a brand new car depreciates the second you drive it out of the dealership. This is why most car enthusiasts and owners suggest and prefer buying second hand cars. The reason behind this practical theory is that, you can save a big sum of money by letting first owners shoulder the cost of the new cars’ rapid depreciation during the first five years of purchase. Philip Reed, a Senior Consumer Advice editor from Edmunds.com, even says that “I think it’s an extremely important way for a family on a budget to save money.” Here are five more reasons why buying second hand cars Beaudesert is a smarter choice:
As said earlier, depreciation is a huge factor that can help you save a lot of money. When used often, new vehicles depreciate in value up to 20% and most cars lose 10% of their value in the first five years – a whopping total of 30% in value for the first initial years of ownership. It also means that a car with a $25,000 price tag will lose $7,500 in value for that short period of time.
Though these cars are usually hard to find, there are one-year-old second hand cars Beaudesert, while two and three-year-old cars are easier to find. These young cars give owners all the chance to drive and sell them with small loss in equity. Most experts even say that buying two or three-year-old cars and driving them until you can’t drive them is the most practical way to own a car.
Reduce Registration Fees
The biggest determining factor of a car registration fee is the vehicle’s transaction price. Most states increase car registration fees to earn more revenue. If you choose used cars, you can easily stunt this increase as your car’s transaction price will show a smaller amount.
Reduce Insurance Costs
In regards to registration fees, the biggest key factor of determining a car insurance cost is through the vehicle’s value. Obviously, second hand vehicles have lesser values than their brand new counterparts, giving them more affordable insurance costs.
Reed also says that used car owners can save more money as some car elements in the car insurance can be dropped if you wish, like the “collision and theft.”
Getting The Best Bang For Your Buck
Stretching your money’s worth is another great benefit of buying second hand cars Beaudesert. You might not be able to purchase brand new luxury cars, but your money can be enough for three-year-old cars in great shape.
Most of us think that a 100,000-miler vehicle is the rule. Thanks to the competitive automobile market, cars with 200,000 mileage can be in good running condition as manufacturers pride in their product’s quality and longevity.
As with the previous paragraph, buyers can get more conservative financing when buying used cars, especially the cheaper everyday model. Downpayments and monthly financing costs are way more manageable that even those on a tight budget can afford.
If you’re in Queensland and looking for new and second hand cars, then you should check out ScenicMotors.com.au. It’s one of the very few car dealers that offer premium quality vehicles with a full range of financing and insurance packages, taking pride in their 100% customer satisfaction.