When people buy cars, they intend to use them for purposes like commuting to their offices, errands, and going for family holidays, among others. Brand new vehicles have a high aesthetic value which makes them very attractive. With all the advertising and marketing, they entice most potential car buyers into getting them. However, before deciding on whether to buy a new car or a used one, it is essential to know the pros and cons of each approach. In many cases, it is advisable to get a used car due to the following reasons:
Used car prices are averagely almost half the cost of acquiring new ones! This allows you to pay off the used car much faster and helps you save some money. On average, consumers switch vehicles after six years of use. If you pay $10,000 for a used car instead of $20,000 for a new one, you could use the remaining $10,000 to get another beautiful car, thereby creating value for your money.
Extreme sales tax on new cars
Most cars are subject to state sales tax in most states. However, this is not the case for used vehicles. Also, car dealers for new cars are known to add significant sales tax to the actual price, which makes them even more expensive. Researching on the existing laws regarding the purchase of new vehicles can further inform you of good alternatives depending on your location.
High dealer fees
Dealers usually add shipping fees and destination charges to the cost of the car. These are unnecessary expenses, as you will not get any tangible value for your money. With used cars, all you need to do is pay a visit to the DMV to pay tag, title and registration fees.
Reasonable Transaction Fees
No matter how great a deal on a new vehicle might seem, most if not all of them have some hidden fees such as shipping and destination costs. Some have hidden advertisement costs which can be very high. For example, used cars in San Diego do not have hidden fees, apart from a ‘doc fee’ which only costs a few hundred dollars.
A good number of consumers complain of how quickly their new car loses value after a short period of buying them. This initial depreciation can be as high as 12% of the purchase cost. This depreciation usually continues with time for the first few years. Used vehicles do not usually depreciate as much since most of the reduction has already occurred by this time. Some utilized cars vehicles may even appreciate it!
In as much as new vehicles may look flashy and have good financial plans, used cars are the better alternative as discussed in this article. Used cars in San Diego offer you all the merits presented. You should therefore not hesitate to get your used car. Also, numerous shops sell used vehicles at a reasonable price.