Home Finance & Banking USED V.S. NEW MATTERS

USED V.S. NEW MATTERS

According to the National Automobile Dealers Association, the average person owns 13 cars in a lifetime, each costing an average of $30,000.  If you were to buy those cars when they were 3+ years old you would realize a savings of $130,000 in a lifetime.

New cars depreciate.  They are not assets. Let’s be honest, cars are made of metal and plastic and their annual value decreases instead of going up.  Most of us simply want reliable transportation at an affordable price. We aren’t looking to invest in a hand-made car like a Rolls Royce, or Lamborghini.  We want to get from point A to point B at an affordable price.  

New cars typically lose 20% of their value as soon as you close the deal and drive it off the lot.  That’s a big hit! Nerdwallet’s automotive expert Phil Reed explains: “You buy the car for $30,000 and sell it three years later for $15,000. The car has cost you $15,000 in depreciation.  Now let’s say you buy the same car, but it’s 3 years old when you buy it. You could buy the car for $15,000. Three years later you could sell it for $10,000. So the used car depreciation cost you only $5,000.”

Used cars aren’t what they used to be.  Cars last a lot longer than they did when you were growing up.  It’s nothing to put 250,000 miles on a car that has been well maintained with regular maintenance.  Used cars are cheaper to insure and their tax rates are much less than a new one. Taxes and registering a new car, depending on where you live can promote heart failure if you aren’t familiar with their costs.  Few new automobile dealers are going to tell you how much the taxes, insurance, registration and state fees are going to be on your new car. 

Buying a used car allows you to “bump up” to a level of car you couldn’t otherwise afford if it was new.   You can save a lot and still go up in the class of vehicle you are purchasing. Insurance is a big factor when purchasing a new v.s. used car.  The math isn’t hard. It costs more to replace new car parts and repairs than it does a used car. It’s not hard to figure out. Call a dealership parts department and simply ask this question:  How much is a bumper for a 2020 model versus a 2016 model of the same car.  

There’s nothing wrong with a new car, but if you are living on a budget and monthly costs are important you might want to consider a reliable used car.  

At Reasonable Rides we help people get more bang for their buck when it comes to finding a new car for you.  We know used cars and we are here to help you find the one that meets your transportation needs. Whether it’s a second car for the family, a truck to transport your boat, or a first car for your new driver check out our inventory and come see us at one of our three locations in Pelzer, Easley, and Travelers Rest.  

Reasonable Rides

Contact us or come see us at one of our three easy to find locations  https://www.reasonablerides.com/contact-us/

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