Just turn on the television or the radio and you will hear deal after deal from new car dealers doing their best to try and get you to their car lot for a new vehicle. They will offer nice incentives and huge deals that you typically do not hear about from the used car industry. These deals, ads and specials will become more prevalent around the end of the year as they attempt to clear out old inventory to make way for new inventory, but before you get sucked into the deal of lifetime on a brand new car consider a few key points about used cars. Out of every four auto sales, three of them are used and only one of them is new. This could probably be the reason why sales of used cars has continuously risen over the last seven years. Before you consider buying new, look at some more reasons used auto sales may make more sense.
Down Payment
Sometimes those with less than perfect credit can benefit more from vising a used auto sales dealer compared with a new auto sales dealer. Those with less than stellar credit can get a used car or a variety of pre owned vehicles and need substantially less money for a down payment than you would need if you visited a new car dealer for a brand new automobile. Since credit scores are used to determine what the risk factor is for lending money, if your credit score is not what new car dealers want to see then you will be asked to put down a large amount of money. This is their way to trying to ensure that you are vested in the purchase. If you choose to visit used auto sales then the price of the car will be substantially lower meaning less money to lend which equals less money that you need to put down.
Insurance
Whether you are buying a used vehicle with cash or your are financing it, you will need auto insurance on your vehicle. If you are making payments on your vehicle you will most likely need more insurance on it, and the used car dealership will typically need to see proof of insurance for the duration of the loan on the car. Choosing to go to used auto sales instead of new is beneficial because the insurance tends to be less for a used vehicle than it is for a newer vehicle. The reason for this is usually because a used vehicle is not quite as new therefore the parts to fix a used vehicle will be substantially cheaper than the parts needed to fix a new vehicle. When you are considering your budget, make sure to budget enough for insurance as well, and rest assured knowing insurance for a used car is much less than insurance for a new car.
Upkeep
Let’s face it, new cars are becoming more and more like computers and that makes it harder and harder to work on them yourself. More and more issues have to be worked on by a certified mechanic which is not cheap no matter what type of care you have or drive. Used cars are typically older which means not only will they have less computerized machinery, but it will also be easier to perform some maintenance tasks yourself without having to take them to the dealership or to a certified mechanic. While you are considering maintenance costs, take into consideration the costs of registration. Registration on older cars is significantly less than what it costs to register a new car. Not only are you saving money on the car, insurance and maintenance but you are also saving on yearly registration fees.
Considering all these tips it’s easy to see that used auto sales just make sense. The amount of savings that you can get add up over time. There is a wide variety to choose from so you’re sure to find exactly what you are looking for. Before you choose new, carefully consider your choices with used auto sales.
