Much has been written about the red-hot auto market of late. With five consecutive years of sales growth and a sixth one on the way, everything is coming up roses for the rebounding industry. As far as consumers are concerned, now is the time to splurge on a new ride. The only question they must answer is whether to buy new or pre-owned cars. Here are several reasons they should strongly consider the latter. Minimize Depreciation From a financial perspective, buying a new vehicle is not a great investment. Few products on earth are subject to such incredible rates of depreciation in the first few years of ownership. According to industry data, a new ride loses about 30 percent of its value in the first year alone. It will continue shedding value until it is only worth about half as much as the buyer paid by year three. After that time, however, depreciation rates decelerate and flatten out. As such, shoppers can save themselves enormous sums if they simply purchase pre-owned cars that are over three years old. Save On Insurance Because secondhand vehicles are generally cheaper to repair than pristine options, it is typically less expensive to insure them. Depending on their driving record and where they live, drivers could save several hundred dollars on auto insurance for an older ride. They can save even more if they drop some of the protection from their policies, such as theft and collision coverage. Cheaper Registration Fees Much like auto insurance, the fee that the state assesses to register a vehicle is based on its sale price. Because pre-owned cars are generally cheaper, you should expect to pay a lot less on this one-time charge. We should also add that many states are raising their registration fees as auto sales continue to rise. Added Extras For Less Leather seats, a better stereo system, auto detailing, and other assorted upgrades cost a pretty penny at the dealership. However, if you were to purchase that same customized vehicle a few years later, you'd get all those extras for pennies on the dollar. Why? Because those special features depreciate just like the rest of the automobile. In many cases, the seller may even throw in those little upgrades for free just to close the deal. A Lot Less Worry One of the reasons cars depreciate at such a brisk pace is that minor damage is inevitable. Scratches, dents, and worn seats are just a few of the everyday issues a driven vehicle will encounter. Owners who cannot bear the thought of their pristine auto getting dirty might actually be better off buying a secondhand ride. Although it might not feel as satisfying driving off the lot with an automobile someone else owned, you won't have to deal with the worry that comes with every new ding. It is also much cheaper to care for a car that has already acquired a few scars. For all of those reasons and more, pre-owned cars are often the best option. To learn more about their options for pre-owned cars, Harrisburg, PA residents should visit http://www.certifiedpreownedofhershey.com/.
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