Posted On Aug 16 2019 | Advisories
You might be a dilemma about whether buying a used car will be a good deal or not? Well, it can be said that owning a used car is even a smart investment decision.
1-A used car has a lower depreciation value
It is well known that the highest depreciation of every vehicle is recorded in the initial year. In fact, as per the facts and figure, around 11 per cent of vehicle value is lost in the first year. However, the depreciation rate slows down after the initial year. So, it is better suggested to make the purchase of the used vehicle
in the second or third year.
2-Smaller liability attract less interest payment
If you have sufficient money to buy the vehicle, then it is good. However, if you are thinking of availing a loan for the purchase of a vehicle, it is a matter of concern. Higher the loan principal amount, more will bet the finance charges imposed. Therefore, you will have to bear the liability of higher interest.
So, it will be better if you could avail the best-used vehicle even at the limited budget. This will help you to get rid of the high-interest burden.
3-You can make the most out of money invested
If you think of buying a new car, you must have a good budget. You will have to think before, how much you could invest in the car purchase. However, if you think of buying an old used car, you will get a plentiful option even in the limited budget. Therefore, one can enjoy premium facilities of a vehicle even within the limited bucks.
4-The benefit of less insurance cost
Generally, it is seen that the insurance policy cost of the car for all the new vehicle is less. One can enjoy the lower premium for the old vehicle by reducing the coverage of the vehicle. ven for some people, making use of the old cars can make them drop using the collision coverage
5-You can even resell the car at a close purchase price amount
It is quite obvious that the maximum depreciation for nay vehicle is in its initial year. That initial depreciation can never be recouped. However, if you are acquiring a used vehicle in the second or third year and then thinking of disposing of it after using a couple of years? You will certainly obtain a good value for the vehicle. Rather you will be able to get the maximum amount you paid in the past.
Why Used Vehicles
The old vehicle depreciates at a slower rate. Therefore, you can buy the used vehicle and drive it. Further, after a few years, you can even resell the vehicle and make good money from it.
Even when it comes to tax payment, you will have to pay it on the purchase cost. Therefore, the base price of the used vehicle will be lower. Hence, the legal fees and tax payment will be much lower for the used vehicle than the brand new ones.
Still, do you find yourself to be in a hesitant state whether you should buy a used vehicle or not? You can seek the assistance of the certified pre-owned vehicle reports. They undergo close inspection procedure to evaluate the real price of the vehicle. The reliable ones even provide a proper warranty for their reports. They will even give you a clear history report of the vehicle with complete information about the background. However, you will have to likely pay a nominal amount of fee to avail the services.