A lot of questions are usually involved in the car buying process, but the first and the most important one is: Should you buy a new or used car? There is no simple answer to this question since it will depend on your goals and what you want. For instance, if your goal is to save money, then you will go for a used car such as used ford edge Ottawa other than purchasing a new car. However, you need to keep in mind that each option has its pros and cons. Here are some of the top benefits of buying a used car.
Better Price
Typically, new cars lose a significant chunk of their value the moment they are driven out of the showroom. This is why used cars are still a better bargain. For instance, you can even own a 2014 Ford Fusion that was bought a few years ago for half price. Think about the cost of purchasing a new car and you will see why used cars still make a lot of sense. Research shows that the average price of a new car in the United States is $27, 536 before taxes and fees. That car could be $13,000 after a few years. Now, the big question is; would you love to be the original owner who lost approximately $13,000 or the second owner who saved that much?
Depreciation Benefits
Although cars lose with each passing month and mile, the steepest decline tends to happen a few months after the vehicle leaves the dealer’s shop. Some car models can lose up to 40 percent of their value in their first year. With a used car, there is no risk of rapid depreciation since the car has already lost much of its value. Additionally, with a used ford edge Ottawa, it’s possible for you to buy it, use it and sell it later on with minimum loss in its value.
Falling Registration Fees
In most states, the rate of your annual vehicle registration fee is based on the value of your car and its model year. In Ottawa, for instance, the vehicle registration fees fall dramatically during the first few years after your vehicle is manufactured. The rate is usually highest in the first three years and then becomes constant after five years. This means that you can end up saving thousands of dollars by avoiding the new car registration fees by purchasing a car that is at least three years old.
Affordable Insurance Rates
A critical factor in determining the cost of your auto insurance is the value of your car. Since used cars tend to have less value compared to the newer versions, the cost of insurance will also go down. You can even do away with the collision and theft coverages if your car is old enough.