6 Reasons Why Buying Used Car Is Beneficial For You

Buying a used car rather than a new one has several benefits. As new cars continue to get more expensive, more people will turn to the local car dealerships. Not only it saves money, but it can also reduce risk, offer greater variety and provide cheaper insurance rates. Here are 6 benefits of buying a used car.

Minimizing Deprecation

A new car starts depreciating the moment it is driven out of the showroom by the first owner. New cars tend to lose most of their value early in their life span. Some studies have estimated that a car loses 50% of its value in the first three years. That’ll depend on the brand and model of the vehicle. Buying a used car means the deprecation cost is minimized. Car dealerships like Roseville Automall have tons of gorgeous used vehicles at a great discount compared to new vehicles. Unless you’ve got lots of money to spend, used cars are a wise purchase.

Typically a one-year-old used car might be challenging to find, but a three-year-old used car is more common. Keep in mind; most cars have a warranty that expires after a certain duration or mileage. The sweet-spot of buying a used car could be the time right before the warranty ends. This provides a lower price while some period of the warranty in case there is a problem with the car.

Cheaper Insurance

Insurance costs are dependent on many factors such as the age of the driver, driving history, location, type of car, etc. As new cars could have more expensive spare parts or repair jobs, the insurance premiums are also more expensive. As the price for used cars is lower, some aspects of insurance policy such as theft reimbursement are also cheaper.

The newer technology features of new cars also make them more expensive to insure. In some cases, owners of used cars drop collision coverage from their auto insurance policy. For them, it is cheaper to pay for repair from collision damage rather than paying monthly premiums. This makes for further reduction in insurance premiums.

Reduced Registration Fees

In Australia, car registration is for 6 months or 12 months. The cost of new car registration is going to depend on the make and model of the car, but in any case, it is going to be more expensive than registration for used cars. New car registration in Australia consists of a fee of registration, motor vehicle tax, license plate, and stamp duty. For a used car, most of the expenses are not required. A much cheaper registration transfer fee is all that is needed.

Reduced Risk

The lower price of used cars makes for reduced risk, but the used car can also have hidden issues. The most reliable way to lower this risk is to look for certified used cars. The price is going to be cheaper than new cars, and the certification will minimize the probability of any issues with the car. The certification is a worthy investment. Most certifications come with some form of warranty.

Better Value

The specifications of a used car might not be too different from the newer model. For example, a new version could still be using the same engine or the shape of the exterior is the same. This means used cars provide a better bang-for-your-buck compared to new cars. Used cars also allow for some price negotiations making them a great value for buyers.

Variety

Every year, car manufactures offer new models, but the number of options available for used cars is much higher. The used car market also offers the option of buying an older model that is more desirable than models in the new car market. The classic design, different engines, and other reasons could make the used car more desirable for certain buyers. The estimated size of Australia’s’ used car market is 3 million units. That’s a lot of options to choose from.