Except for its newness, there is not always much difference in functions and features between new and old cars. Old cars are often a better choice provided you do not have any fascination for buying a new one. With car prices going up every year it might be challenging to balance your finances if you go for a new car because it could be the second most expensive item besides your home. Moreover, for first-time buyers it makes perfect sense to buy an old car and then after a few years switch over a new one. It is not only the high price of new vehicles that is a concern because you can bargain for a reasonable price but picking a car from the full range of Vic Bailey’s Used Cars could save some good money in subsequent costs, associated fees, and depreciation value.
When shopping for used cars, look for a sparingly used car that has been around not more than two years and done under 30,000 miles. This could be an ideal choice that offers quality within your limited budget. Now, let us look at the cost saving benefits.
Used cars cost considerably less if you compare the figures available from 2015. As reported by the Kelly Blue Book, the average spending on a new car was $33,500 as against the price of around $20,000 for used cars. Besides saving money, new cars get old in a fraction of time the moment you drive it out from the dealership because of depreciation that erodes its value immensely. The depreciation rate is around 50% which means when your new car hits the road the first time, and it loses half its value.
No sales tax
New cars attract sales tax in all states but not so for old cars because many states exempt old vehicles from sales tax. For example, in Georgia, there is no sales tax on used cars. The saving on this account could be huge as sales tax on new cars charged by dealers is substantial that can run into thousands of dollars. Depending on the state laws and your residing state you can save good money by buying a used car.
Reduced registration fees
In most states, the value of the car, the model and the year of manufacturing determines the registration fees applicable. After a few years, the registration fees of cars can come down drastically as it happens in Colorado, depending on the year of manufacture. Check the rules of your state which can again help to save money.
Get extras at no additional cost
Dealers add a few extras to the car like anti-rusting coating, a protective film, and pinstripe, etc. and charge good money. But when you are buying an old car, you get these extras without paying anything for it because it is included in the cost of the vehicle.
Even if you are looking for some special features in a used car, you get it cheaper than what the previous owner had paid when the car was new.