Written by a Guest Blogger
There are many questions that come to mind when a person is considering whether to buy a car or not. The most important among these questions refers to whether a person should purchase a new or a used car. It all depends on the preferences and the budget of each and every buyer.
These days, due to the great increase in inflation, the demand of used cars has increased to great extent as well. The reason for this is the increase in terms of prices required for purchasing new cars. Some people believe that old cars used to be better in quality. The most important question though is affordability. There are certain advantages which you should consider in terms of buying a used car. They will help you to understand why so many individuals currently look for a used car and do not even consider buying a new one.
Buying a used vehicle is definitely a cheaper option as compared to the purchase of a new car. If it is not leased, the initial cost of the car is on the higher side which is usually way beyond the reach of the buyer. This is especially true these days due to so many taxes that are imposed on the vehicles and which many customers are unable to pay for. Although regular and SUV owners know how to sell their SUV or smaller vehicle for a fair price, you still get the opportunity of purchasing a great car at a lower price.
Buying a new car model is sometimes risky. This is mostly because previously used car models are more reliable for having been previously tested. Another reason is also that no one can predict the behavior of a new vehicle. No one can tell you for sure what the response on the car will be on the market either.
The Market Value
Generally it is observed that the market value of a new asset has decreased drastically in the last few years. Especially after the arrival of a new car model a decrease in price will immediately be noticed on the secondary market next year. When you decide to buy a used car this doesn’t happen. Used cars are purchased at reasonable prices and do not suffer major changes in the case of resale.
The Depreciation Effect
The initial higher rate of depreciation is charged in the first or second year as compared to previous years and the book value will decrease more in early years of ownership thus buying a used car is convenient for the buyer in this case. You can easily take advantage of mistakes that car owners make when selling.
Used cars are generally easy to insure as compared to new ones.
One of the main benefits of buying a used car from a dealer is that most of these cars are certified. It means that the dealer will give you the guarantee that it will function just like a new car. The dealer is responsible during the tenor.
Lower Registration Fee
The registration fee is mostly nominal for used cars. If a car is already registered the buyer only has to pay the transfer fee to the concerned department of any country for a change of ownership in terms of names.
All in all, there are numerous advantages to consider when it comes to buying a used car as compared to buying a new one ion terms of costs, rentability and affordability. Just make sure that you know everything about your desired small car, sports vehicle or SUV when you buy so that you can get a great price.