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Why buying used cars is the better option?

Written by admin. Posted in Hot Right Now

, The Daily Deal

Published on July 06, 2018 with No Comments

A slick, new vehicle has caught your eye. The television ads draw you into a dealership to see that shiny new vehicle. But is a new car right for you? Sure, it has all the bells and whistles and an attractive financing option, but what are your other choices? Used cars! There are many reasons to purchase a used vehicle, and yes, this is a shameless self-promotion to get you to use our Used Car Checklist. Buying a used car can save you money, provide the same satisfaction as a new car, and provide quality transportation for many years.

1. Buying a Used Car Saves You Money

On average, used cars prices are almost 50% lower than new cars! You will be able to pay off a used car much faster, saving you financing fees. Consumers switch cars at an average of six years after purchase, and if you paid $10,000 for a used vehicle instead of $20,000 for a new one, you could opt into a nicer car for your next vehicle or buy another $10,000 vehicle, creating your very own two for one special!

2. Bulk of Depreciation Has Already Occurred


Consumers complain about how quickly a new car depreciates—as soon as they drive it off the lot. The value of a new vehicle can drop 11% on the drive home meaning your $20,000 vehicle is worth only $17,800 once it leaves the lot. The vehicle continues depreciation as weeks, months, and years pass. With used vehicles, the bulk of the depreciation has already occurred. Some used vehicles may even gain value! Edmunds has provided a handy “True Cost to Own” tool

 that provides how much a vehicle will really cost and how quickly the vehicle will lose value.

3. No Exaggerated Fees


A deal on a new car might look great, but many new vehicles have hidden or crazy fees such as shipping charges, destination fees, and “dealer preparation.” Some new car prices include hidden advertising fees that can be as high as $1,000! A used car generally has no hidden fees, but you may still be charged a “doc fee” which can be a few hundred dollars.

4. Lower Customization Costs

You don’t have to settle for expensive dealership add-ons when buying a used car. You may install your own at a lower cost than on a new car. What a great way to spend the money you saved when buying a used car.

5. Certified and Thoroughly Inspected

Certified Pre-Owned vehicles assure used car buyers they’re getting a quality, thoroughly inspected car that’s also a bargain. Certified Pre-Owned vehicles have been inspected, refurbished, and certified by the manufacturer or other certifying authority, assuring the vehicle is high quality. Certified pre-owned vehicles often have an extended warranty, special financing and other benefits. New cars simply hold the assurance that they are new.

6. Warranties

Some used cars still have part of their original warranty. Other used cars may have the option of creating a new warranty. An extended manufacturer warranty on a used car can provide factory trained technicians to repair your car with quality parts and speedy service. Plus, you can utilize a portion of your savings from NOT buying a new car and have a warranty that covers everything until 100,000 miles or more. What new car offers that?

7. Lower Insurance Premiums


If you are in an accident with your new car, the insurance will pay for what the car is worth at that time, leaving a gap between the purchase price and what the vehicle is worth. That’s where gap insurance comes in. Gap insurance will cover the difference between what you paid for a new vehicle and what its depreciated value is, but it will raise your insurance premium. Gap insurance isn’t necessary with a used car as the depreciation has already occurred.

8. Better for the Environment

Almost a quarter of the carbon dioxide a vehicle produces during its life-cycle occurs during manufacturing and initial shipment. Buying a used car reduces the carbon dioxide output into the environment. Used cars also impact the environment less than newer, hybrid vehicles. Hybrid vehicles use lithium-ion, lead-acid, or nickel-metal hydride batteries that have a much larger environmental impact than a used car due to the toxic waste left behind by batteries and acid.

9. Lower Annual Registration Fees

In most states, the rate of your annual registration fee is based on your car’s value and its model year. Generally, the rate is highest in the first three years, and then levels off after five years. You can save about a thousand dollars by avoiding new and annual registration fees by buying a car that’s at least three years old.

If you are stuck between new and used vehicles, consider purchasing a used vehicle from Hillside Auto Mall.

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