5 Ways You Save Money Buying a Used Vehicle

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These days, it’s increasingly popular to buy cars used instead of new. This decision makes great sense for a variety of reasons, the most important of which is how much money you can save. There’s no doubt that the very best value cars you can purchase are pre-owned. To see why this is the case, take a look at the following five ways you save a great deal of money when you buy a used vehicle.

Huge Purchase Discount

When you buy a used car, you can easily save up to 50 percent on the purchase price. This saves you many thousands of dollars on that single purchase, and buying pre-owned cars will also usually give you six-figure savings over the course of your lifetime. Given that the average American buys six cars throughout their lives, you can see how these savings really add up.

Excellent Value for Money

A discount of up to 50 percent is incredible for the value you’re receiving. These days, the average used car is only four years old. The average driver covers 13,500 miles per year, which means a typical four-year-old vehicle has only 54,000 miles on the clock.

But modern cars usually last for a good 300,000 miles before they need any major repairs, which means you’re buying a vehicle still very close to the start of its lifespan. Less than 20 percent of its total lifelong mileage has been used, and you’re getting it for half the price.

Certified Best Value Cars 

To further alleviate any concerns over quality, you can buy a Certified Pre-Owned (CPO) car that’s been thoroughly inspected and refurbished, with reliability certified by the manufacturer. CPO vehicles usually have an extended warranty, various financing options, and other benefits. With CPO cars, you’re buying a solid, high-quality, like-new product for a very attractive discount.  

Avoid the Bulk of Depreciation

As you probably already know, very few products depreciate in value as quickly as a new car. You typically lose 10 percent of the purchase price the moment you drive off the lot. That means if you drive your brand-new car just a hundred meters, and then try to sell this still-new vehicle, you’ll never get more than 90 percent of the price you paid only an hour earlier.

The price usually depreciates a further 30 percent in the first year and up to 60 percent in the first five years. This is despite the fact that after five years, a well-maintained car is still in excellent condition, with hundreds of thousands of miles still to go.

Lower Sales Tax

Needless to say, when you buy a car for a lower price, the sales tax is also reduced. The average sales tax across all states is 4.87 percent of the vehicle purchase price, which can amount to a nice chunk of change saved when you buy pre-owned.

Lower Annual Registration Fees

Buying used also saves you money on the upkeep costs of your car. In most states, the annual registration fee is based on the value of your vehicle. So a lower-cost used car has a lower registration fee.

Reduced Insurance Premiums

With a used car, you’ll save money on your insurance premiums for the same reason. Insurance companies typically charge less for lower-priced cars because their potential expenditure on repairs or replacements will also be lower, in the case of an accident.

To find just the right pre-owned car, truck, or SUV today, visit CarsMart.net. All our vehicles are meticulously inspected to ensure you’re getting the very best value possible, at an exceptional price.

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