We have used cars on the brain today! Maybe it is because we are looking at the car our spouse is driving and thinking that it is time to get something different, but that we do not really have the budget to buy a new car. Luckily for us, All Star Dodge Ram near Creve Coeur has a huge selection of used cars and inventory specials that are just ripe for the picking! Today we want to take a look at some of the benefits of buying a used car.
Less Depreciation: New cars typically depreciate about 20 percent when they are driven off the lot. Most cars will lose another 10 percent in value during the first year. That’s a 30-percent loss in value during the initial year of ownership. A $30,000 car loses roughly $9,000 in value during that period. You can avoid that hit by buying a one-year-old used car. He cautions that one-year-old used cars are hard to come by, but it’s becoming easier to find two- and three-year-old used cars. Additionally, with the “right” used car, it’s possible for an owner to buy it, drive it and sell it with little loss in equity.
Less Insurance Costs: A key factor in determining the cost of car insurance is the value of the car. Because a used car has less value than a newer version, the cost of insurance should be less. Experts say that even more money can be saved because some elements of car insurance can be dropped. “Collision and theft: Once a car is old enough, you can do away with those if you choose,” Reed from Edmunds says.
For more information on the benefits of buying a used car from All Star, stop by the dealership today!