If you are like many people out there, the idea of buying a brand new vehicle is more than a bit daunting. It’s a huge expenditure, and you will likely be making payments, and paying interest, on the vehicle for many years. Instead of buying these expensive vehicles that depreciate the minute they drive off the lot, it makes much more sense to start looking for cheap used cars.
The Price of the Vehicle
This is the most prominent reason that people decide to buy cheap used cars. They want to save as much money as possible when it comes to their vehicle purchase, and you can save many thousands of dollars when you buy used. As long as you research the vehicle to understand exactly what problems it might have, and that would necessitate repairs, it’s a good deal.
Because of this, many people only buy used, and it could be something you want to consider. Just because a vehicle has 80,000 or even 100,000 miles on it does not necessarily mean it is nearing the end of its life. Many vehicles today are actually getting up to 200,000 miles as long as the owner takes good care of them.
Reduction in Registration Fees
In many states, the fees charged when you register a vehicle are based on the value of the car’s price when you bought it. This means that registering a new vehicle and keeping the registration up to date each year can be very expensive. If you buy cheap used cars, the cost of registering is typically much lower.
While this might be small savings to some people, it is another way to save nonetheless. Over the first few years that you own the used car, it could save you hundreds of dollars.
Insurance Cost Reduction
When you have a brand new vehicle, you need to get more insurance coverage, and generally at a higher premium. This is because the value of the new vehicle is so high, even after depreciation. However, when you buy a used vehicle, the insurance premiums tend to be a bit lower, even when you have full coverage.
Something you will want to keep in mind when you are getting cheap used cars, though, is that some of the options have salvage titles. They can still be a good option if you are willing to put in the effort required to rebuild them to get a rebuilt title.
However, you will find that insurance can be a bit more difficult.
If you are going to be getting liability coverage only, you will be able to get it through most insurance companies. It gets more difficult when you are trying to get comprehensive and collision coverage, as the companies do not know how to value the vehicle with a rebuilt title.
Some companies will still offer coverage, though, so you simply need to talk with several insurers about what they can offer. Just make sure they don’t try to charge you too much on premiums. The cost of insurance for a salvaged and rebuilt vehicle should be lower, since the value is lower.
These are three of the best reasons to consider cheap used cars when you are buying your next vehicle. You can find some fantastic options through dealers in your area and online, as well as through auctions. In fact, buying through an auction can offer you more variety in the vehicles available, and you may be able to save even more money. It is certainly worth considering.