Buying a used car can be a great decision for many reasons, but it’s important to make sure you have the right information when making this purchase. Use this post to learn why buying used cars in glendale saves you money and how to shop for these vehicles.
The Reasons Why You Should Consider Buying Used Cars
Used cars are an excellent way to save money. If you buy a three year old model, your payments will likely be much lower than if you buy new model. Plus you’ll save extra money on taxes and registration fees because the government considers them “used” instead of brand new.
Here are five smart reasons to buy a used car.
- You may get a better deal than you think. Let’s say you’re looking at two identical cars: one is brand-new while the other is just off the lot; both have identical price tags of $20,000. But how do they compare? According to Edmunds.com, the used car may be cheaper. The site says it is a good idea to factor in the cost of buying a new car, registration and taxes into your calculations. The cost of financing and maintaining a new vehicle are also significant factors in determining how much you’re actually paying for your car.
- You can get an older model with fewer miles. According to Edmunds.com, you’ll pay less on a used car if it has fewer miles on it than if the vehicle has more than 50 percent of its original life left; this is true for most newer vehicles as well as older models because most are now governed by mileage limits and require periodic maintenance.
- You can avoid a lemon. Buying a used car will save you time and money when you’re stuck with a lemon. According to Edmunds.com, most used cars have a better chance of not having major problems than new vehicles, since newer cars are being manufactured with more and more extras than ever before — like anti-lock brakes and stability control — that can give them trouble down the road.
- You’ll get even bigger savings on taxes if you buy used. According to Edmunds.com, the value of a used vehicle is depreciated from the time it rolls off the factory lot. That means you can get a bigger tax break if you buy used than if you go for a brand-new car. Here’s how it works: Buying a $20,000 car that you drive for three years would mean paying about $6,265 in taxes over that period (assuming an average tax rate of 15 percent), but someone who buys a three-year-old $20,000 car would pay only about $3,319 over the same time period (assuming an average tax rate of 20 percent).