Buying new cars to change your old car or add another collection in your garage can be tempting. However, it is easier to buy new cars because of the latest technology and added features. Although when you look at it from a different perspective purchasing a new car is not financially suitable for many reasons. You have to know why other people settle to buy a used cars in el cajon rather than purchasing a brand new car.
It depreciates right away
When you are thinking of buying a new or used car after taking off the lot, the car’s value gets down. Other vehicles hold their value compared to others, and new cars are pretty longer than they usually do. Thus new cars are still losing 30% of their value in one year.
Borrowing money to buy your dream car, you are now losing 30% of the value while paying it monthly, which adds the interest. When you look at it from a different view buying a new car is not a good investment when it loses too much money.
Earn more money
A depreciated new car can be an advantage when you love to shop for cars. You cannot afford to buy your favorite budget with that budget you have, but when you try to look for an older model, you can afford to have it.
Pre-owned cars are ideal
When you think about not having a new vehicle warranty on a used car, you have to look for another option with certified pre-owned vehicles. Every car is offering the same form to make buying used cars easier. It is different with every manufacturer, and you must understand that the dealer-certified and manufacturer-certified are not the same thing. The manufacturer certified are offering a higher level of protection.
It has a warranty that will depend on the mileage or time and roadside assistance when shopping. However, you don’t have to buy it because you think it is the way to get a warranty on a used car. Some dealerships and companies let you buy a warranty on your used car for protection.
Used cars still have data
One good thing about buying a used car is all the data are available. Mainly they are redesigning their model every 5 to 6 years. The redesigning of the car includes new transmission, suspension, or engine. The reliability of the older model doesn’t show how everything will turn out. But in those used cars, all the data and usual problems are available for you. You will also know its depreciated value because you can track it easily.
Fewer insurance costs
When you think about buying a new or used car, the insurance costs will differ. When your vehicle has a higher value, the insurance company will pay for the car’s damage, while a used car will cost less to change than higher model cars. Depreciation is unnecessary to the insurance company when your vehicle is damaged, which you bought the same year. Mostly the insurance company will give you the potential costs to pay. But it won’t cost too much to change when it is a used car and more than three years old.
