Buying a car is an enchanting experience whether you are young or old. While buying a new vehicle can be more exciting with all its incredible features and controls, you may never know how much precious money you can save by buying an old vehicle. Buying uses cars have many benefits in addition to saving you money. According to Nerd Wallet website, an average person in his lifetime buys 10 to 13 cars that can cost them an average of $30,000. So, if these cars are three or more years old, then instead of buying them in the brand new condition, you can surely save money during your lifetime if you buy them three years later.
Therefore, let us get into this discussion of whether it is a viable decision for you to buy a brand new car as soon as it comes out or you should wait for a couple of years to let the price come down to your level of affordability. Once you fully read this post, you will better be able to make a decision about whether you should buy a brand new car or an old car. So, let us get to the point straight away.
Secret of Buying a Car
Car is a liability not an asset. This is a famous quote by the World’s genius investor and coach Robert Keepsake. Once you fully understand the liability of a car and the money you lose in its depreciation, you will be able to save loads of money in terms of cash during your lifetime.
The fact remains that whenever you buy a new car, as soon as it comes out of the showroom, you lost almost 20% of its value. So, for example if you bought a car for paying $40,000 to the dealer, then when you drive it away from the car dealer, you can lose almost $10,000 of the car’s original value. Isn’t that painful?
Moreover, you lost more money in terms of wear and tear of the car. An ordinary vehicle (non-electric or non-hydrogen car) can lose its value up to 30% after it depreciates. Why you don’t feel this? It takes a lot of affect later when you later on decide to sell your car.
The Stigma of Using Old Cars
It is used to be common for the people to put down used cars by saying that it wasn’t up to their standards and do not meet family’s needs. That is not the case anymore. Vehicles are designed so sophisticatedly nowadays that there are many features you can use to meet your family needs. New vehicles are much stronger and comfortable to meet your special large family’s needs.
For example, in terms of reliability, new vehicles, trucks, and SUVs have never been so dependable than they are today. It is not uncommon for some cars to delivery more than 100,000 miles before they can need major repairs and need money to keep them up and running.
Since all vehicles and the strongest of the SUVs also need repairs, a lot of money can be wasted on their oil changes, tire rotation, and brake optimization. One benefit of new vehicles is that you can drive them as fast as you want between scheduled visits. Even tires and brake pads last much longer than before.
Benefits of Using a Used Vehicle
We talked about having pros and cons of having and driving a brand new vehicle above, now let us shed more light of its opposite, the old vehicle. There are several pros of driving old cars and vehicles. For instance, buying used car is much more beneficial and cheaper than cars in general. These cars are more dependable. However, let us talk more about other advantages.
Used cars have lower insurance rates. Especially, when the value of the vehicle is less, it costs less to ensure the cash for cars. This option becomes more expensive because when a car goes into an accident or wear and tear, comprehensive coverage cannot drop collision coverage. Moreover, when you use new cars instead of old, registry renewals also become cheaper.
The cost registering an old car can go down every year. That means driving an old car removals can improve your chances of saving money each year compared to a new car.
One more thing that is worth mentioning here is that when you get a first dent in your new car, it is a huge number. That means you will have to spend a lot of money and can be a huge bummer for you. Also, it’s easier to figure out what you should pay for a new car, even if the negotiation process is still a pain.
In the light of all these things, you can decide whether you can afford to buy an old car or it is viable for you to drive a new one no matter what.