Best Place To Buy Used Cars – Image via m.atcdn.co.uk
Best Place To Buy Used Cars – If your old clunker uses the last tire, you may be wondering if you’d better replace it with a new or used vehicle.
It depends on a number of factors.
Usually, car experts say buying used is a better deal. It is true that when you drive a new car from the parking lot, the car automatically depreciates to thousands of dollars. On the other hand, you will pay more for used cars.
But there are other things to consider, such as whether you have enough cash to make a down payment? Do you have a trade-in worth the down payment? If you have good credit it may be easier to buy a new one with less down payment than if you bought used, according to Autotrader. There are many producer incentives for new cars in the form of money back and lower financing costs.
Conversely, buying used means putting a down payment in advance or a trade-in with equity, so it’s sometimes possible to find new cars with producer incentives that will take care of your down payment.
Depreciation is another important factor that suggests that purchases are used as a better deal. On average, a new car loses between 20 and 30 percent of its value as he rolls the dealer lot. Some cars can depreciate by 50 percent in the first three years. You can refer to the Kelley Blue Book Ownership cost calculator designed to calculate the average cost of five years of any vehicle, including depreciation.
In essence, if money is not a problem, choose a new car. If it is – and that’s for most people – consider the above points before making a purchase.