The financial benefits of used cars

Are you interested in purchasing a car sometime in the near future? Many people seem to have a hard time when it comes to choosing between purchasing used cars and new cars. There are many benefits available for you when it comes to purchasing a used car. You will be able to find immediate savings and you will also find long-term savings as well as possible savings on banking fees. Some of the advantages of used cars include ample selection as well as the improving reliability of late model vehicles. However the main advantage of purchasing a used car is affordability.

A recent study discovered that the average cost of a new car before taxes and fees in 2009 was approximately $25,500 while the average total cost of a used car was a little over $8000. Unless you have the money to spend outright on a new car it is a much better decision to go with a used one. You may be able to purchase a used car with cash, if you have the savings. By going this route you will save a significant amount of money in interest from bank loans or financing. Even if you were to get a loan for a used car you could more than likely get an open loan where you could pay it off as quickly as possible. This will also cut down the amount of interest that is charged and in turn save you money.

With the availability of the Internet it is now possible to find used cars quickly and easily online. There are many used car portals available that will help you to find a wide variety of cars in many different makes, models, and colours. Online used car portals are a very popular place for many rental car companies, leasing companies, independent and used car dealers to sell their cars. Added to the private sales, finding a car online is easy. It is also very possible to find used cars that are in good condition and have been only owned by one owner. Some used cars for sale may even have extended warranties that are still valid. This makes buying a used car even more attractive.

Another major benefit to purchasing used cars is the money you will save on insurance, since a used car is considerably lower when it comes to insure than a new car is. You can customize your insurance to cover only the things that you need with a used car, where a brand new car, which likely has some kind of financing attached to it, will require full insurance, including things like theft and fire.

Another benefit to purchasing a used car over a new car is the resale value. New cars usually lose a significant amount of value the moment you drive them off the lot, where a used car’s value will remain pretty much the same the moment you purchase it. Overall the best financial decision to make when it comes to purchasing a car is to go with a used one.