A few decades ago, there was a time in which people rightly assumed that buying used cars would be the worst investment possible, since you would often end up with an unstable vehicle purchased at an unfair price. These days, things are much different since manufacturing standards have ensured long-lasting reliability that extends way beyond a first owner's use. This is why people who know the industry are in agreement: A car that has been mildly used is an optimal choice for the average buyer. We often deal with customers mulling over the purchase of a new or used car when they come to renew their auto tags. As your local source for Ft. Lauderdale auto tags, we’ve put together a few answers on the subject to let you know how to make the most out of a new purchase.
Buying a Used Car in Fort Lauderdale, Florida
The reasons are many. For starters, it is way cheaper to buy a used car than a new car since the depreciation has already been taken care of. Used cars went off the showroom a while ago, and that cost was paid by its original owner.
However, it goes beyond just the price. A cheaper price means you can get a better vehicle within your budget: compare purchasing a well-stocked 2017 VW sedan for $34.000, or the alternative presented by getting a 2015 Mercedes-Benz C-Class with a mileage of only 25,000 miles for almost half the price.
When the cars are on the table, the choice becomes quite obvious.
And if you're looking for real savings, buying a lightly used 2015 VW SUV may shave the price even more. That's around $15,000 that goes to your savings when compared to a new car model.
And to be honest, you may not even tell the difference when you're on the road.
Another fun perk? Buying a used car will cost even less when spending for insurance.
One of the main factors when calculating the cost of car insurance is the value of said car. Since a used car has less market value than a new model, the cost of insurance drops when making the comparison. You could also ignore some of the factors in car insurance if your car comes cheaply enough, saving you something extra. Not only that, but fees for car registration are often based on transaction prices, and buying a used car means that you can have it registered at a lower rate.
Going back to reliability, a few decades ago any car would rust apart with the years, turning into a husk of metal that groans as it drags itself over the pavement. Can you imagine that happening with an automobile that came out two or three years ago? You would really have to give it a punishing life for it to break down the way older cars used to.
Cars today last longer by default. Studies show that by the mid-2015 most cars driven through the country had an average record age of 11.5 years. The industry also predicts that a few years from now the number of 12-year-old cars still being used will be 15% higher that it is today.
It's a matter of fact that modern cars are made to last much longer than ever, saving you a lot of money while expecting many years on the road for a used car.
Studies show that since car prices keep going up every year, American buyers find it increasingly harder to afford new models. When salaries are coming up short when hunting for new wheels, the $35,000 average prices come too steep for a regular Joe's budget.
Isn't it ironic? Buying a lukewarm regular sedan to drive around the neighborhood and buy milk without much to show for could be beyond your capabilities. In some parts of Florida, average calculated monthly incomes added to four-year loan payments that don't go beyond a person's monthly income growth makes people able to only afford -at best- $300 a month, which is to say a car worth around $15.000.
That may get you maybe halfway to buying a new sedan.
And yes, you raise the loans so as to afford a new vehicle, as many car dealers are now opting to do, often stretching their loans up to seven years. However, that loan will eat away at your income for several years, and any financial advisor will tell you that's the kind of thing you should seriously not do.
And would you really like to be paying hundreds of dollars a month just to get a car that will be seven years old when its payments are done?
Think about it. If you're looking for a family vehicle, an expensive and new SUV might be beyond your most optimistic financial expectations, making a new sedan with fewer options your only realistic choice. Yet with a used car in mind, you can afford a three-row SUV that has all the commodities including leather upholstered seats and perhaps a screen for the kids. Cleaning up the mess the kids made in your new sedan might be a problem you should not be taking care of if you clearly have other options (while still being a responsible parent, of course).
There are plenty of dealers that offer certified pre-owned vehicles, and there are companies that inspect thoroughly their stock in order to maintain quality standards and warranties, cutting short the risks that used to exist when buying used vehicles of all kinds.
Many buyers already know this: In 2014 alone there were over 36 million used cars sold in the United States. Those numbers rose to 38 million the year after and it's expected to keep climbing every year for the foreseeable future.
Most of those cars are only three years old or younger, which goes to show how people are seeking the quality and performance of more recent cars without having to dole out the cash for brand-new models. Back in 2015, the average used car was sold for $18.500, way beyond the $32.000 average cost for new vehicles that year.
So, there's really a healthy probability that buying a used car might be the best option for you.
But if you really can afford it, or you're just so set on buying a specific new car that suits your desires and are willing to pay for it, then maybe you should buy new. However, most people in the country are going for what best suits the average salary, and that is the logical, safe and smart choice of finding their need met on used cars. If you need help registering a new or used car, contact Auto Tags of Florida at (954)848-4808.