There is nothing like driving around in a new vehicle. However, when you are shopping, you should consider one of the used cars for sale. There are many positives about buying brand new, but you should remain open. |
New automobiles often come with a hefty price tag. Vehicles that have had a previous owner and two or three years on them offer a big reduction. For those who are on a budget an automobile that is even just a year old can be reduced by as much as $7,500. While the interest rate might not be as good for a previously owned vehicle as it is for a new one, the reduction in price can make for significantly lower monthly payments.
Why is a previously owned vehicle so much less? The reason is depreciation. All vehicles depreciate to some extent. By their third year on the road, all automobiles have lost roughly 47 percent of their value. The minute you drive a brand new car off the lot, you have lost approximately 20 percent of the value. In years two and three, you lose an additional 15 percent per year. Used cars for sale will see a lesser amount of depreciation, making them a big draw.
When you have a brand new automobile, you will pay higher insurance rates. In addition to paying that higher fee, in the event of an accident most insurance companies will not cover the full cost of your new vehicle because of the depreciation. You will still be responsible for anything the insurance does not pay. By choosing to purchase used cars, you save money due to the lower cost of the vehicle.
In most states, you have to pay your motor vehicle sales tax when you register for the first time. On a brand new automobile, your first tags and registrations could be in the upper hundreds all depending on how much you paid. Because you save money on a previously owned vehicle, you end up saving money on your registration fees. Instead of paying close to a thousand dollars to register your vehicle, you will pay only a few hundred.
The Question of Reliability
Of course, when it comes to purchasing a previously owned vehicle the biggest hang-up people have is how reliable the automobile is. There are several reporting sites that allow you to look up information using the vehicle information number (VIN). You can use this information to determine the service record and how many owners the vehicle has had. You can also see if there were any accidents. Some dealers also offer certified pre-owned vehicles. These autos have been checked out by professional mechanics and verified that they are in good working order.
When it comes to buying one of the many used cars for sale, there are many benefits. Not only are you saving money on the initial cost, but you save on your insurance and registration as well. Of course, there will be the question of reliability. However, with sites aimed at helping you track the records of the vehicle tells you if there were accidents and how many owners there have been.
When looking for used cars for sale in Lansing, MI, residents go to Feldman Chevrolet of Lansing. To learn more, visit http://www.budkoutschevy.com/searchused.aspx.
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