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Purchasing new versus purchasing used -- Why buying used is a smarter financial choice

By Edited Nov 13, 2013 0 0

Truck for sale

When it comes to choosing a new vehicle, you should be aware of all of the downsides associated with purchasing new. While a new vehicle may seem like the better choice, buying a good used vehicle may be a better option. By purchasing a vehicle that is a couple of years old, you are allowing the original owner to pay the initial depreciation expense while you enjoy a great vehicle for many more years to come.

Depending on the type of vehicle that you are interested in, you can purchase used for up to half off the original sticker price. Some vehicles such as Honda, Toyota, and Lexus depreciate at a much slower rate than other vehicles. Most American vehicles such as Ford and Chevrolet depreciate rather rapidly. If you are looking to get a great deal on a used vehicle perhaps an American-made vehicle may be your best option. The quality of American-made vehicles has really improved in recent years and is a great option for anyone looking to save money.

Purchasing a used vehicle is a much smarter financial move for several different reasons. Number one, you are able to insure this vehicle with liability only insurance. When you finance a vehicle, you are required to pay comprehensive insurance which can be very expensive. In addition to a lower insurance rate, you can also enjoy a lower tax rate on a used vehicle. Vehicle taxes can be very expensive and by purchasing a lower value vehicle, you will be taxed less than a new vehicle. Perhaps the largest savings associated with purchasing a used vehicle is not having to make a car payment each month. With the average car payment exceeding $400 per month, this can be a significant savings.

With no car payment, less taxes, and lower insurance premiums, you are able to put more money back into your pocket each month. Owning a vehicle is a much larger expense than most people realize. Step back and ask yourself the question "what is the purpose of a vehicle"? If you are just looking for basic transportation you can find this by visiting Craigslist. Craigslist is an online classified ad website that allows anybody interested to post advertisements of their used vehicles along with other household items.

Craigslist cars for sale is a great option for individuals who are looking to purchase a vehicle for under $2000. Some vehicles sell for as little as $500 on Craigslist. Finding a great use vehicle starts by researching the vehicle that you are interested in. Craigslist used cars often sell for a fraction of the price that a dealership charges. When it comes to purchasing a used car online, ensure that you are dealing with a legitimate person. Vehicles that are offered online at websites such as craigslist for a deeply discounted price are often fraudulent. If you believe that the deal is too good to be true then it probably is. Also, anyone interested in shipping a vehicle from overseas is usually a scam artist. Only deal locally in a face-to-face transaction.


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