3 Ways That Buying a Used Car Saves You Money

When shopping for a car, there are many factors to consider, and one of the biggest is cost. Although most people go into the car-buying process with a budget in mind, it’s always a good thing to save money. So before you shop, check out these three ways that buying a used car can pay off.

Less Depreciation

A brand new car is always exciting, but did you know that the first year of a car’s life is when it depreciates the most? In fact, most cars depreciate 20 percent their first year. So while it is cool to drive off a lot in a new car, a used car will retain its value for longer than if you bought it brand new.

Lower Insurance Rates

Buying a new car is costly, but when you buy a used car you not only save on the initial cost, you also save on recurring expenses, such as insurance rates. Insurance rates decrease with the replacement value of your car, so a car that has depreciated a year or more will be less costly to insure than a car that is brand new.

Lower Registration Fees

Similar to insurance rates, the older a car is, the lower taxes and registration fees are. Why pay high registration fees when rates drop every year it ages?

Now that you know how you can save with buying a used car, it is time to get out there and start shopping. That perfect used car is just waiting for you.

Image provided by Shutterstock

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