Why Buy a Used Car?
Between financing, insurance, taxes, fuel, and maintenance costs, owning a car can be an expensive proposition.
One way for shoppers to cut costs is to buy a used car. Thanks to slower depreciation and lower payments, taxes, and insurance premiums, used cars usually offer better value than their fresh from the factory counterparts.
Along with the financial benefits of going the used car route, some drivers put few kilometres on their odometers each year and just don't need a new car either.
Most new cars lose almost 20 percent of their sticker price the moment they leave the lot and another ten percent by their first birthday. Many three-year-old vehicles sell for as much as fifty percent of their original MSRP.
While new car buyers enjoy the pleasure of owning a vehicle fresh off the assembly line, they also bear the financial brunt of depreciation. Between the ages of three to six years old, many cars hold almost ninety percent of their value.
Lower Insurance Costs
Insurance companies base their rates on the cost of the car being insured. Naturally, because of higher replacement costs, a vehicle that sells for $50,000, for example, will have higher premiums than one that sells for $15,000.
More Car For the Money
Some buyers find that the vehicle they really need. or want, is financially out of reach. It makes no sense to buy a subcompact for a family of six, when they need a large SUV. Some drivers prefer the pleasure that high-end luxury vehicles offer, but don't have anywhere near the budget. Pre-owned vehicles typically offer much more "bang for the buck.'
Depending on where and from whom the vehicle is purchased, the taxes can be quite substantial. British Columbia residents, for instance, typically pay between twelve and twenty percent in Goods and Services and Provincial sales taxes.