Last Updated on December 31, 2022 by Leepu Da Maxim
In recent years, the average price of used cars has exceeded $20,000. Compared to the previous 5 years, the increase has been 19%. So, year after year, this cost has increased by 3% or 4%. In some cases, it is much more profitable to buy a new vehicle to avoid possible repairs.
- Used cars generally cost less than new cars, so if you are running low on budget then you can buy used cars
- If you can properly maintain a used car then it will be as reliable as a new car
- Used cars generally have lower insurance premiums than new cars which is very convenient
- Before buying a used car you should take the car for a test drive to know its condition and performance of the car
An Overview of Used Car Costs
|Economy cars||$5,000-$10,000||Honda Civic, Toyota Corolla|
|Mid-size sedans||$10,000-$15,000||Honda Accord, Toyota Camry|
|Full-size sedans||$15,000-$20,000||Toyota Avalon, Honda Odyssey|
|Luxury cars||$20,000-$30,000||BMW 3 Series, Mercedes-Benz C-Class|
|Sports cars||$20,000-$40,000||Ford Mustang, Chevrolet Camaro|
|SUVs||$10,000-$20,000||Honda CR-V, Toyota RAV4|
Buying A Used Car – Used Cars Prices
|2015 NISSAN ALTIMA||$14,000 – $16,000|
|2015 TOYOTA COROLLA||$14,000 – $15,000|
|2015 NISSAN SENTRA||$13,000 – $14,000|
|2015 CHEVROLET CRUZE||$13,000 – $14,000|
|2016 JEEP CHEROKEE||$19,000 – $22,000|
|2016 DODGE JOURNEY||$17,000 – $20,000|
|2015 FORD EXPLORER||$24,000 – $29,000|
|2014 INFINITI Q50||$22,000 – $24,000|
|2015 KIA OPTIMA||$14,000 – $18,000|
|2015 FORD FUSION||$14,000 – $16,000|
What Are The Benefits Of Buying A Used Car?
These days, a lot of people need to buy a used car because of a limited budget. However, there are several benefits in addition to the affordable cost of a used car. Today, it is possible to find many used vehicles in good condition and with excellent design. In turn, a new vehicle may not be the answer most of the time.
Of course, it is possible to find a used car that is much more expensive than a new vehicle. Beyond that, when people acquire a used car they should not face excessive loss of value costs and fees associated with new vehicles. All of these additional costs on new vehicles are usually in the thousands of dollars in the first few years.
One of the best ways to optimize your budget is by acquiring a nice used car. In this case, a car with less than 30,000 miles and only two years old can be an excellent option.
This way, the person can avoid spending too much money on vehicle maintenance and overhead. Let’s take a closer look at each of the six major benefits and purchasing a used vehicle.
1. The Level Of Depreciation Of The Used Vehicle’s Value Is Low
Here, it is important to consider that we should compare the level of depreciation of the value of a new vehicle with a used vehicle. One of the most important aspects is the first moment when a new vehicle begins to lose value. When a person removes a new vehicle from a dealership, they do not drive even one mile.
However, when a new vehicle leaves the dealership with its new owner the loss of value is usually significant. That’s why used vehicles that are a few years old are often an excellent choice for a large number of people. Some models of the Porsche brand could have been purchased for $50,000 in 2007.
In the same way, this same vehicle can be purchased these days for $25,000 or even less. So a new vehicle in 2008 could have cost about $25,000 without considering additional fees and taxes. In these times, the same vehicle can be obtained for only about $13,000.
When a used vehicle is in excellent condition, then you have the possibility of saving between $12,000 and $13,000. Many times it is even advisable to buy a vehicle with about 2 years of use. As we have mentioned, most of the value that depreciates is located in the first and second years of use. So, it is something you should consider.
2. To New Vehicles, You Must Add The Taxes
Of course, taxes on new cars are not something that salespeople mention very often. In this case, taxes are often overlooked in major sales ads for all vehicles. Besides, in much of the United States, many state laws encourage taxes in this case.
Here, the laws tax the purchase of new cars and new vehicles in general. In contrast, used vehicles do not have state sales taxes. So, in this sense, people have the possibility of continuing to save money and not paying these state taxes. One of the most common examples is when buying a used vehicle in Georgia.
So, you need to consider that state taxes could add up to a few thousand dollars on some vehicles. To make an excellent decision, it is necessary to investigate the state laws of each state.
This will make it much easier to make an accurate decision based on your budget. You don’t want to buy a new car and then find out about all the taxes you will have to pay.
3. There Is A Decreasing Level Of Registration Fees
In almost every state the year and value of a vehicle determine the rate of the annual registration fee that the user must pay. In many places, this registration fee drops to very convenient levels after a few years.
One of the most common examples here is the Colorado registration fee. If the vehicle you wish to register is already a few years old, then you will have to pay much less in total.
Particularly after three years of use, the fees to be paid drop drastically. Also, after 5 years of use of a vehicle, the annual registration fees stabilize and continue to decrease. So, you will have the possibility of saving a few thousand dollars if you purchase a used vehicle that is 3 years old or more.
Ideally, you should purchase a used vehicle that is in excellent condition and five years old. So, the money savings will be greater and your budget will certainly appreciate it. However, we can continue to mention other additional benefits you should know about.
4. Low-Value Features In Used Cars
At the time you purchase a used vehicle then you will be able to find a lot of very affordable features. In other words, you will be able to get exactly what you are paying for. In the case of new vehicles, there is usually a set of additional features that increase the final value.
These are some features that already come from the factory and the user cannot choose what to remove. So, the person who acquires a new vehicle is obliged to pay for all the additional features they have not requested. Of course, this does not happen in used vehicles since no extras are added that are not very useful.
Beyond that, people who buy a used vehicle will have to incorporate the features they need into the vehicle. Some of these features could be anti-rust treatments for the paint and other components for greater comfort inside the vehicle. When these things are not included in the sale of a used car then the value does not increase.
5. High Dealer Rates
Here, it is necessary to consider that dealers who sell new vehicles incorporate a lot of additional costs. Within all these costs you can find the concepts of preparation, destination fees, and shipping charges, among others. Of course, all these costs are additional to the anti-corrosion treatments in a new vehicle and other similar aspects.
Also, the high dealer fees are often not reflected in actual services to customers. On the contrary, this does not usually happen when people buy a used vehicle from a private individual or a dealer. So, it can be another plus point to continue saving money in general.
In particular, it is much more convenient to negotiate the price with a private seller rather than a dealership. Therefore, buyers who wish to acquire a used vehicle have excellent bargaining power in this case. Here, it is possible to lower the rates and the final cost to make each person’s budget more flexible.
6. Additional Aspects
Here it is necessary to consider that a large number of vehicles can provide a minimum life of 100,000 miles. So, you still have a chance to get a vehicle with a positive overall condition and a good level of confidence in use. A large number of people can obtain a used vehicle in optimal mechanical condition and without paint damage.
At the same time, a large number of dealers can extend some certification or warranty programs. This way, the buyer is much more satisfied and sure to get a good operation in the vehicle. You may even be able to increase your peace of mind by testing the vehicle before you buy it.