In general, you will save money if you buy a used car instead of a new car. The key to the success of buying a pre-owned car is to get a reliable car at a bargain cost. Here are some reasons why a used vehicle will save you money.
- Overhead cost for new vehicle: Dealers charge a significant amount of money for delivery cost, tax-title-license fee, and profit. Some dealers charge hidden cost such as document processing fee, detailing, etc.
- Insurance: You will have to pay a higher insurance premium for a new automobile.
- Tax: A pre-owned vehicle will have lower tax than a new car because of lower purchase cost.
- Depreciation: New car prices depreciate faster than an old vehicle.
Caution: You must make sure that you are buying a reliable car free of any mechanical problem. Pre-purchase inspections by an expert mechanic, brand of car, history of maintenance and ownership, finding bargain purchasing cost are some of the important factors to consider while buying an old car.