Though it’s probably the greatest feeling to own brand-new rides, driving well-maintained used cars in Indianapolis is nothing to be ashamed of. Blinded by the prestige, many fail to realize how much more they have to spend to maintain a new vehicle. Columnist for USNews.com Holly Johnson writes about why the new car smell won’t be worth the price you paid for it down the road.
A growing body of research shows that a brand-new car may not be the best way to spend your hard-earned cash … your new car could lose as much as 9 percent of its value the minute you drive off the lot. That means your brand new $30,000 ride might be worth as little as $27,300 by the time you get it home to show your wife.
Higher price, higher premiums
New cars cost more to insure because of their high acquisition price, plus the simple fact that they’re new. On the other hand, owners of pre-owned vehicles pay less because their rides have depreciated, thus lowering their premiums.
People forget that new cars (especially those with a loan) sometimes require higher levels of collision and liability coverage. The manufacturer suggested retail price also weighs heavily on the overall costs to insure it. What this means is that a new, expensive car might cost significantly more to insure than an older, used model.
High cost of ownership
Unless you won the lottery and paid for the vehicle in cash, you will also have to maintain monthly payments for a considerable period. What’s more, registration costs are commensurate with your car’s retail price. In short, car owners pay more just to own a new one.
Get your wheels from a dealer
Finding a used car for sale in Indianapolis is not a problem; finding a seller trustworthy enough is. You could go to either a dealer or a private seller. Although there is room to negotiate with the latter, you will most likely have to have minor repairs done on your time and on your dime. With a used car dealer like Xtreme Motors, on the other hand, you can be sure it will have been excellently maintained and that will be a great weight off your back... and your wallet.
(Article Excerpt and Image from “The Case for Buying a Used Car”, money.usnews.com, August 01, 2014)