How about a new car? These words continue to grab people’s attention. Today, thanks to a variety of factors, you could say we’re witnessing the dawning of a new age: the rise of the pre-owned, easy-to-flip, vehicle. The reasons are many – new generations that love their freedom and are keen on change, the fast evolution of technology in cars and consumers looking for greater value-for-money, to name but a few. Apart from any historical or anthropological reasons, there are some very solid, clear-cut benefits to going the pre-owned route. Here’s a “Top 5” to get us started.
New cars depreciate, on average, 20 percent the moment they’re taken off the lot and another 10 percent during the first year of ownership. This deep-dive depreciation doesn’t apply to the pre-owned market. Plus, if you’re keen on the sheen of a new vehicle, there’s no shortage these days of two- and three-year-old cars to choose from.
New car loans have great interest rates – this is true. However, with a shorter loan term, owning a pre-owned car is a faster way to be car-payment free and remain cost effective. After all, the average purchase price of a pre-owned vehicle is $13,500.
Each year, a flood of cars make their entry into the pre-owned market – vehicle options that run the gamut of tastes and preferences, from latest models to unique retro-builds or other rare gems. Whatever your preference, you can be sure you will find a car that meets your needs for the season or seasons to come.
Depending on where you live, the registration fee and yearly tax might be lower for a pre-owned car than for a new car. For example, in Massachusetts the yearly tax is dramatically reduced once a car is two years old. However, in the state of Florida, registration fees depend on your car’s weight and class.
Years ago, parting ways with an existing car was rightly considered a hassle. Today, even the most popular dealerships find it hard to keep up with demand and are eagerly looking to grow inventories. Some, like HGreg.com, are even restructuring their business models to become as good at buying as they are selling, and launching campaigns to buy your car – fast and seamlessly.
So, the next time you’re tempted by the thought of switching things up, perhaps it’s time to give in.
Save more, drive happy!