Pocket Book Savings
As you’re watching television while resting after a hard day’s work, a new car advertisement flashes the screen and grabs your attention. While gazing into the abyss of endless rows of shiny new vehicles, one snatches your attention and you begin to ponder. Contemplating on what type of vehicle you should buy, the color you prefer, and what luxury features you desire, you begin to think about the finances and whether you should buy new or used. Admitting to yourself that new would be nice but not practical, the debate of the benefits of investing into used vehicles begins to play; so let’s saddle up and deliberate.
In the United States alone in 2018, there were roughly forty million sales on used vehicles; why do you think this is? Well, buying used vehicles saves you vast amounts of money and keeps your checkbook in your pocket. On average a pre owned vehicle is half the cost of a new one and you will be able to pay it off much sooner. How you ask, let’s break it down piece by piece.
Let’s say you purchased a brand new vehicle four years ago, and you still owe roughly $8,000 on your payments. You decide to trade it in for an upgrade as well as zero down payment because you have great car credit. So no down payment, still owe money, and now you are taking on a new payment. Now you have become upside down instead of ahead because the finance office will add the additional money you owe onto your new payments which will increase your monthly dues rather than lower.
By going to a used auto sales lot and purchasing pre owned vehicles, you save on payments and depreciation value. Once you drive a new car off the lot, it can depreciate by up to 11% by the time you get home. Buying used vehicles the bulk of the depreciation has already been dropped so your financing low cost cars already. Sometimes these used vehicles can increase in value if well taken care of and even had additional work done to them.
When buying used vehicles there are no extravagant hidden fees or costs to them. What you see is what you get outside of tax, title, and license. Some used car dealers require a doc fee but it will only be a few hundred dollars. New cars may seem wonderful at first, but once you notice all the extras that are needing to be paid out, your pocket book begins to weight a lot lighter.
Finally, there are lower customization costs when purchasing used vehicles compared to new. You can buy your own later at a lower price than if a dealership had to add onto a new car due to a package deal you ordered. This could save you thousands when adding in labor fees. Buying a pre owned car is a great investment when you put pen to paper and begin to realize how much money you could actually put back into your wallet.
