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Top advantages to buying a used car Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial choices by providing you with interactive financial calculators and tools, publishing original and objective content. This allows you to conduct research and compare information for free to help you make sound financial decisions. Bankrate has partnerships with issuers such as, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Profit The deals that are advertised on this website come from companies that compensate us. This compensation can affect the way and where products appear on the site, such as such things as the sequence in which they be listed within the categories of listing and other categories, unless prohibited by law. This applies to our mortgage or home equity products, as well as other home loan products. However, this compensation will not influence the information we provide, or the reviews that you see on this site. We do not contain the vast array of companies or financial deals that could be available to you. Share: Barry Austin Photography/Getty Images
4 min read Published March 02, 2023
Writer: Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the ins and outs of securely borrowing money to purchase an automobile. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since late 2021. They are dedicated to helping readers gain confidence to manage their finances with clear, well-researched facts that break down complicated topics into bite-sized pieces. The Bankrate promise
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We make sure that everything we publish is objective, accurate and trustworthy. Our loans reporters and editors focus on the things that consumers care about the most -- the different kinds of loans available as well as the best rates, the best lenders, how to repay debt, and more -- so you can feel confident when investing your money. Editorial integrity
Bankrate has a strict policy and rigorous policy, so you can rest assured that we're putting your interests first. Our award-winning editors and journalists produce honest and reliable content to assist you in making the right financial decisions. Our main principles are that we appreciate your trust. Our mission is to offer readers accurate and unbiased information, and we have established editorial standards to ensure that this happens. Our reporters and editors rigorously check the accuracy of editorial content to ensure that the information you're reading is true. We have a strict separation with our advertising partners and the editorial team. Our editorial team doesn't receive any direct payment from our advertisers. Editorial Independence Bankrate's editorial staff writes in the name of YOU the reader. Our goal is to give you the most accurate advice to aid you in making informed financial decisions for your personal finances. We adhere to strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no directly from advertisers, and our content is thoroughly verified to guarantee its accuracy. So, whether you're reading an article or a report, you can trust that you're receiving reliable and dependable information. How we earn money
There are money-related questions. Bankrate can help. Our experts have been helping you master your money for more than four years. We are constantly striving to provide consumers with the expert guidance and the tools necessary to be successful throughout their financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our content is truthful and reliable. Our award-winning editors, reporters and editors provide honest and trustworthy content to help you make the right financial decisions. Our content produced by our editorial team is objective, factual, and not influenced through our sponsors. We're open about how we are capable of bringing high-quality content, competitive rates and helpful tools to our customers by describing how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for the promotion of sponsored goods and, services, or by you clicking on certain hyperlinks on our site. So, this compensation can affect the way, location and in what order items appear within listing categories in the event that they are not permitted by law for our mortgage, home equity and other products for home loans. Other factors, such as our own rules for our website and whether the product is offered in the area you reside in or is within your own personal credit score may also influence the way and place products are listed on this website. We strive to offer an array of offers, Bankrate does not include the details of each credit or financial products or services. Purchasing a used car over a new vehicle is a great option for many motorists. While rates in the U.S. soar to record high numbers, Americans are seeing its effects at the grocery store check-out and in the . And with the new vehicle costing close to $47,000 as of early 2022 in accordance with Kelley Blue Book now is the ideal time to save some money and buy used . A used car can save you money Buying a used vehicle instead of a brand new one can save you big bucks in several ways. A used vehicle will cost less based on price on the sticker alone, however, that's not where the savings end. It will also mean that you'll reach to your wallet less than if you drove an entirely new vehicle with regards to fees including insurance, depreciation of the vehicle and insurance. The 4th quarter in 2022, the cost for a used car is $526. Drivers purchasing a brand-new car pay $716 according to . A savings of over $180 per month can add up quickly and you could save thousands by going for a used car over an entirely new one. While paying a lower cost for the same vehicle model of different year is an obvious motive to buy a used car but there are other reasons also. Five advantages of purchasing a used car There are many reasons to buy used. Not all used cars are made equal. You must before deciding if a used car has a good condition or bad condition. In that regard , here are five great advantages of buying a secondhand car. 1. A lower depreciation rate for vehicles is a fact of daily driving, however a used vehicle offers much less value than a brand-new vehicle. New cars typically depreciate about 20 percent when they are removed from the dealership. Most cars will lose another 10 percent in value within the initial year. That's a loss in value of 30 percent within the first calendar year. A used vehicle depreciates in a slower manner as a brand new car. This is due to the fact that once you're behind the wheel of the vehicle, it'll have already experienced its significant depreciation. New cars appreciate the moment they leave the dealership however a used car has a slower rate of depreciation so you'll be able to have an increased stability in the ratio of loan to value. 2. Lower costs for insurance differ based on experience with driving, your age, credit score, mileage and location. In general -- because the car will cost less, the insurance cost for a used vehicle tends to be lower than that of a new car. The most important factor to consider when deciding the is the value of the car. Because it is less expensive than a more modern version, the price of insurance will be lower. For coverage recommendations If your car is older then you may want to consider liability only if your state allows it, versus adding comprehensive and collision coverage if your vehicle is newer. But insurance rates are not always consistent so to save money, be sure to and research the estimated cost of your auto insurance before driving off the dealership lot. 3. Lower dealer fees As insurance varies by ZIP code, the expected charges that are associated with a used vehicle are not created equally across all 50 states. However, they are much less than the fees associated with a new vehicle because the cost to purchase the automobile is lower in the beginning. This is particularly true for the sales tax you may have to pay. In order to prepare for the extra fees that come with used the state DMV site for details on title tax and registration fees and documentation fees. 4. You get more value for your money Stretching your car-buying dollar is another benefit that comes with buying an used vehicle. You can save money by buying second-hand rather than new. If you have your sights set on a luxury vehicle, you may not be able to afford the latest model, however one that's two or three years old may be more suitable for your budget. It's also important to consider the fact that car manufacturers do not have to redesign their vehicles each year, which means that the technological and style differences may be less noticeable. Consider these savings potential and then compare which one best suits your needs with a . 5. Peace of mind the past, driving used vehicles was viewed as a risk and many people saw it as a risk, but the availability of vehicle histories has changed this landscape. The drivers now have access to information about the vehicle's ownership history as well as the history of accidents, status on the title, mileage, and much more. Before approving an used car, take advantage of websites such as Carfax or AutoCheck to see history reports on the vehicle. Based on the car's vehicle identification number, also known as a VIN, these reports provide numerous valuable details including verification of the mileage of the vehicle and whether it was ever declared a complete damage by an insurer. A certified pre-owned vehicle is an option if you are still worried about the possibility of hidden issues in an older vehicle, purchasing certified pre-owned might be the right choice for you. You'll still save money by purchasing a used car but you will also have more confidence in the security of the car. Certified pre-owned or CPO programs differ between manufacturers. The basic concept is that CPO cars are ones that conform to a manufacturer's standards and have some type of guarantee against defects, similar to a warranty for new cars. To do this, check the inventory of the dealership for the CPO vehicle you are looking for. Every dealership uses its own language for pre-owned choices, so make sure to research online prior to going to the showroom. Most of these vehicles also include additional warranties. Make sure you check the length of that warranty to know what it covers. Next steps Buying a used vehicle is an excellent way to take the wheel without spending as much as you would for a brand new car. You'll be rewarded with lower depreciation costs and less on registration and insurance but still be in assurance that your vehicle is in great condition. If you are looking to finance a car that is used ensure that you check for current rates so that you can be sure that you're getting the most favorable price available. This is what financing will give. Leanr SHARE more:
Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers to navigate the ins and outs of securely borrowing money to buy an automobile. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since the end of 2021. They are enthusiastic about helping readers gain the confidence to control their finances through providing concise, well-studied information that breaks down otherwise complicated topics into digestible pieces.
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