Is it a good idea to buy a used car? A few decades ago, it was common thought that a new car was a safer investment than a used car. With the many changes in manufacturing standards, depreciation, high loan interest rates, and overall value, the answer is unequivocally yes in the 2010s.
Naturally there are many caveats to this statement. Car make and model, driver history, repair history, maintenance history, and title type are important factors to consider when you look for a used car in Pompano Beach, Florida. There can be no doubt that the information on a reliable model or repeatedly released model of car is far more extensive, and any problems in manufacturing have been found, as well as recalls that the NHTSA demands the manufacturer fix. When you buy a new car, especially of a recently released model line, you put yourself at risk of the common trend where companies release relatively untested products full of cheaper parts than were previously required.
Benefits of Buying a Used Car in Pompano Beach, Florida
Depreciation: The Number One Problem with Buying a New Car
Depreciation is your number one reason to buy a used car instead of buying a new car. According to Edmunds, in 2018 a new car loses 11% of its value once driven off the lot, and in five years, the car depreciates to 63% of its original value. Depreciation after this point is much smaller, and therefore, your investment is more secure when you purchase an older car if you plan on reselling it later.
You Have More Purchasing Options when Buying a Used Car
Oftentimes people choose to buy a used car because they cannot afford a new car or do not want to deal with a high interest loan contract or lease agreement. Since you’re buying used, you can get more for your money.You have a far greater ability to afford a European car, many of which enter the market in the $40ks new, slightly used with a budget of less than $20k.
Florida Insurance Costs Are Outrageous
Savings go beyond the immediate drop of several thousand dollars on a car. In the State of Florida, we as individuals spend thousands of dollars annually on insurance premiums that continue to rise. One of the best ways to save money over the long term is to buy a used car. Insurance rates for used cars are always less than those for new cars because the value, and again, the depreciation costs, have already been covered. If your car has a lower market value, then your insurance company doesn’t feel like they have to worry as much if you wreck it.
Legal Expenses Are Lower on Used Vehicles
Yet ANOTHER perk to buying a used car in Pompano Beach is the simple fact that registration costs will be lower than if you were to get a new car of the same make and model. Initial registration fees are based on the purchase of the vehicle, so you’re guaranteed to shave off an immediate expense of getting your car road-legal.
They Don’t Make ‘Em Like They Used To
Your grandpa said it, and it’s truer today than it was back then. By mid-2015, most US-driven cars had an average record age of 11.5 years. According to the automobile industry, in the future, the number of 12-year-old cars still being used will be even higher than it is today.
These are just a few simple fiscal reasons to buy a used car. That doesn’t mean you can’t enjoy a sweet new M-class or get behind a growling Porsche 9/11. If you need help registering a new or used car, we’re happy to help.
Skip the DMV line and contact Auto Tags of Florida at (954)848-4808 for same-day service.