New car vs. used car: Which is better?
Arguably, the most expensive thing you will probably ever buy in your lifetime will be a house. But next to this comes another expensive thing which most everyone needs: a car. Buying a car is no joke, and it’s an expense which you should properly plan for if you want to do it right. But while there are many new cars on the market and another one coming out every so often, there are notable advantages to buying a used car rather than a new one. Of course, you may think that there are some great bargains and deals on new vehicles, but those deals may come with a few unexpected expenses which could make your new car purchase less-than-ideal. If you still can’t make up your mind whether you should opt for a new car or a used one, here’s the deal on new cars versus used cars: which one is better?
More savings, more value, not as much depreciation
There’s a lot of truth to what people say that a new car will lose a lot of its value once it is driven off the car lot. Once you reach your home in your new car, it will probably have lost about 11% of its market price. Depreciation is all too real on any car, and depreciation is the reason why you can buy a 2007 luxury used vehicle such as a Porsche for only about $25,000 (the same price as a Honda from 2011). And rather than pay $50,000 for a new Porsche, why not go for a slightly older Porsche with relatively the same features for only $25,000? This is a much better deal when you think about it. When you buy used, it doesn’t mean that you have to settle for a junk heap – you can get a lot of pre-owned vehicles that are around two to three years old which are still of high quality and give you better value for your money.
Think about the sales tax
If you opt for a new car, you not only have to pay for the car itself – you also have to think about the sales tax. Most states have sales taxes for new car models, but not many have sales taxes on used cars. And even if your state has a sales tax for used cars, it still won’t be as much compared to the sales tax for new cars, which can run to the thousands.
Lower annual or yearly registration
Another fact is that in many US states, your annual or yearly registration for your car will be based on your car’s value and the year it was produced. So, if you have a new car, the registration fee for it will be quite high compared to a used one. Also, the registration fee is often higher during the car’s first three years, and it tapers off and levels off altogether when the car is five years old.
The car’s overall condition
Today, a lot of vehicles are built and designed to run for a minimum of a hundred thousand miles, and this means that you don’t have to compromise on the car’s overall condition and reliability even if you get a used model. You can still get a pre-owned vehicle that’s free from dents and scratches and still looks ‘as good as new’ especially if you choose wisely. Additionally, if you buy a used car from a reputable dealership such as used car Wyoming specialists Rocky Mountain Yeti Evanston, you will have a car which has been inspected and meets the various requirements for certification.