In this world where time is money, owning a personal vehicle to commute saves a lot of time. One must understand that a car is a requirement and not a luxury. If you plan to buy a car, not necessarily that has to be a brand new one – You can buy a used car spending significantly less. Don’t let your ego push you to buy a new car. A penny saved is a penny earned.
Research before you take a step
If you analyse the data from the website of TCA Auto, a reputed dealer who sell used cars in Oahu, you will be convinced that buying a used car makes more sense.
A 2010 Mercedes-Benz CLS 550 Coupe whose original price was $67000 is now being sold at $17000. A 2010 Jaguar XF Luxury of 46 thousand dollars is now sold at 14000 dollars. The current price of a 2004 Toyota Camry LE $5500 whose original price was $19810. This is the biggest reason why anyone would like to buy a used car.
Depreciation burns a hole in the pocket
Suppose you are visiting a store selling both brand new & used cars in Oahu, the moment you take the car out of the showroom and drive it heading to your home, it loses 20% of its value. After 1 year, it will lose another 10% of its value. So, within a year, the car loses 30% of its value. Thus, a car is not an asset, it is a liability.
To overcome this, buying a used car is the most optimal option. Since a car loses 30% value within 1 year, you can use this problem and make it a solution – you can buy a one-year-old used car. This will save you a lot of money.
Insurance & Taxes feast on your money
The insurance premium that one needs to pay for a new car is significantly higher than the premium of the insurance of a used car. The sales tax on the price of a new car is higher too.
A used car has already experienced a significant portion of depreciation. The value of a used car will not fall significantly. But the value of a new car will decrease by 30% within the first year of purchase.
With time, hundreds of cars are submitted to be re-sold. A buyer can get a lot of variety if he decides to buy a used car. But a limited number of new cars are released every year & there are not a lot of options to choose from
So, from where we have started, we can reach this point to conclude
…” Indeed, it’s a good idea to choose are used the car if you are in the position to throw away all the bucks for a new car”
A used car will give you the same functionality that a new car of the same model will give. There is no point in buying a new car and emptying your pocket. Smart decisions like this keep you ahead in the race.