The benefits of buying a used car
For many people, when looking for a new set of wheels the first question is always, “new or used?” There are a number of benefits to buying used cars rather than new ones, many of which center on the fact that used cars offer substantial savings while not sacrificing much in terms of style, comfort, performance and security. Here are a few reasons why buying a used car is a financially sound decision:
– New Car Depreciation. A newly bought car loses more of its value in the first year of purchase than any other year. In fact, one of the key differences between new and pre-owned cars is that a new car loses about 10% of its value within the first minute of driving it off the lot. In addition, after the first year a new car tends to lose, on average, about 10-15% of its value per year.
By buying a used car, you can get an almost identical vehicle to the latest model. The difference? The price tag is significantly cheaper.
– Insurance Costs. The first rule of thumb for insurance companies is, if the car costs more, so does the insurance. If you make the decision to go with a new car, not only will its value plummet within the first couple years of driving it, you’ll be paying significantly higher insurance fees.
– Stamp Duty Costs. Stamp duty on preowned cars in Perth, for example, is typically much less than the duty on new cars, simply due to the way the stamp duty system works. Lower priced cars typically have a stamp duty of 2.75% of the price, while higher priced cars can incur duty costs of up to 6.5%.
If you’re looking to purchase a vehicle, then consider the financial benefits of buying a used car. Whether you’re buying a pre-loved sports car or used family cars, you’ll avoid the hidden costs of new vehicles without sacrificing on safety or car quality.
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