People buy cars for various reasons, some of which include commuting to the office, picking up groceries, taking the kids to sporting events, and taking the family on vacations, among others. There usually exists two options when it comes to buying cars; buying a new one or getting a used one. Most of the time, you may be predisposed to getting a new car. With all the advertisements, promotions and beauty, used cars appeal to a lot of people. However, before deciding on your preference, it is essential to know the pros and cons of each approach.
In many cases, it is advisable to get a used car due to the following reasons:
Used Cars Have Lower Price Tag and Depreciation Rates
The common saying that a used car loses a chunk of its value once you drive it off the lot could not be more accurate concerning vehicles. CNW marketing research indicates that in 2018, the average cost of a new car was about $25,000. The same car in 2019 is worth about $13,000. Based on this alone, you can ask yourself the question ’what kind of buyer do you want to be, is it the one who saves $13,000 within a year to get more or less the same product or the one who is willing to spend the additional amount?’. Used cars are still subject to depreciation. However, with used cars, the rate is much slower, so you end up saving in the long run while getting the same services.
High Sales Tax on New Cars
Most cars are subjected to state sales tax in many states. Interestingly enough, this is not the case for used vehicles. Also, car dealers for new cars are known to add significant sales tax amounting to thousands of dollars. Researching on the existing laws regarding the purchase of new vehicles can further inform you of a good alternative depending on your location.
Change in Registration Fees
The annual cost of registering cars is based on the value of the car and model year for most states. For some states, the registration fees drop significantly during the first few years after manufacture. This rate is usually highest in the first two to three years of production but levels off after about five years. Waiting a few years for your car’s registration fee for dropping can save you a lot of money in the long run. You can then get your vehicle from used cars in apex and enjoy.
Crazy Dealer Fees
Dealers add shipping fees, destination charges and even dealer preparation fees. Incurring these costs is highly unnecessary as all you will have to show for them is a reduced bank balance and no tangible value for your money. With used cars, all you need to do is pay a visit to the Department of Motor Vehicles to pay tag, title and registration fees. This gives you more negotiating capability since you can walk away if the private seller cannot meet your reasonable terms.
New cars are generally very fancy and smell great, how much exactly is that scent worth? Your research will enable you to analyse the real worth of getting a new car as compared to getting a used car from used cars in apex in good condition at a lower price.