In The Market For Another Car? 4 Ways You'll Save Money When You Buy A Used Car

You may have been told when looking to buy a car that brand new cars are a better option than buying a used one. However, there are several advantages to buying a used car, not least of which is that it can save you a lot of money. Here are just four of the ways you can save money by purchasing a used car.

Initial Cost

When you buy a new car, you spend top dollar on your investment. That is, you pay full sticker price for your purchase. The dealer may give you some discounts in the form of rebates and incentives, but you still pay more than if you purchase a used car. When you buy a used car, you can save hundreds, even thousands of dollars on the purchase.

You may even be able to acquire a new model you want at a lower price if you buy used. Some brand new cars are returned to the dealer shortly after purchase. Fortunately, as soon as a car is sold it becomes a used model; no matter how long the previous owner had it in their possession. Some of these models may only have a few hundred miles on them. Buying used means you'll get a great car for a reduced price.

Transfer Fees

In addition to paying less on the initial cost of the car, you'll also pay less in transfer fees when you purchase a used car. That's because the transfer fees are based on the price you paid for the car. Those transfer fees include your vehicle registration, which are lower for used vehicles.

Depreciation Costs

When you purchase a brand new car, the value of that car depreciates as soon as you sign the paperwork. Unfortunately, that means your car is worth much less before you even drive it off the dealership lot. One of the great things about buying a used car is that the bulk of the depreciation has already occurred, which means your investment won't take a hit as soon as you make your purchase.

Insurance Premiums

Finally, when you insure a brand new car, insurance companies charge you more money for the coverage. One reason for the higher price is that new cars cost more to repair after an accident, and may be a bigger target for theft. Used cars aren't as expensive to insure, which means you'll save money there as well.

For more information, contact companies like Schwieters Chevrolet of Cold Spring.