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The Advantages of Buying a Used Vehicle

The Advantages of Buying a Used Vehicle

The Advantages of Buying a Used Vehicle

Everyone loves that new car smell, but most people don’t enjoy the monthly bills that come along with it. While owning a brand new car is nice, buying the same model pre-owned is even better. There are so many advantages to buying a used car  in Toronto over a new one. Nexcar Auto Sales & Leasing has listed some of these advantages below.

Minimal Depreciation

The moment you drive a brand new vehicle off the lot, it loses 20% of its value. That’s right - by simply taking your car from the dealership to the nearest corner, it is already worth 20% less than you originally paid. Cars also lose about 10% of their value within their first year, which means that you are losing out on 30% in less than 12 months.

Buying a car that is already 2 to 3 years old will allow you to skip out on major depreciation. Most people that buy a pre-owned car are still able to sell it for close to the purchase price even after driving it for a couple of years. Proper research can help you choose a make and model that holds its value in addition to being an attractive choice.

Lower Car Registration Cost

Your car registration cost varies depending on the type and age of the vehicle. Older and pre-owned cars have a lower registration cost that is based on the total amount you paid for your vehicle. Of course, if you pay a high price for your car, such as is the case with a brand new vehicle, registration will cost more too.

Lower Car Insurance

Car insurance premiums are always going to be higher on a brand new car than on a pre-owned vehicle. Insurance companies place a lower value on used cars and assign them a lower repair cost as well. For new cars, not only will you experience a 30% drop in its value and higher registration costs, but you will also need to pay higher insurance premiums to keep it on the road. Sadly, even after the first year, your insurance rates won’t be reduced. They will stay as high as when you first drove your car off of the lot.

Enjoy Your Upgrades

Upgrades on used cars will end up costing less than if you were to seek the same features in a new model. Instead of settling for a new car with fewer features, you can buy a pre-owned car that has a boatload of luxury upgrades. Even if you are not able to find a pre-owned car with all of the features you desire, aftermarket upgrades are typically still more affordable than new car upgrades. By purchasing used and saving money, you can allocate more towards upgrading your pre-owned car with the features you love.

Our Final Thoughts on Pre-Owned Vehicles

Many potential car buyers avoid buying used cars because they worry about ending up with a lemon. Always do your research and purchase your used car from a reliable dealership such as Nexcar Auto Sales & Leasing. Buying pre-owned cars just makes more financial sense, and if you need help, we are only a phone call away at (416) 633-8188.

Categories: Car Buying Tips