Buying a new car is tempting, especially if you have purchased one before. A new car is likely to have the latest technology and safety features. Plus, the smell of a new car's interior is irresistible. However, buying a new car is not always the best financial decision you can make. Therefore, you should consider purchasing a used car at Keith Hawthorne Hyundai of Gastonia.
One of the advantages of buying a used vehicle is the lower price. A new car loses approximately 20 percent in value during the first year of ownership. It continues to lose around 10 percent of its value each year after that. A used car can depreciate, but it depreciates at a much slower rate. You may only be able to afford an entry-level new car, but depreciation allows you to purchase a low mileage used vehicle that is better equipped.
Another benefit of buying a used vehicle is the lower insurance cost. Depreciation comes into play when the insurance company looks at the value of your car to determine your insurance rate. The insurance rate for a new $40,000 car will be higher than the insurance rate for a $20,000 used car with the same make and model. Wrecking a new $40,000 car will cost the insurance company a lot more money to cover than wrecking a used $20,000 car.
The lower cost of a used vehicle also makes it easier to get financing. Lenders are willing to offer attractive financing options with reduced rates for qualified used car buyers. As a result, you can save thousands of dollars by having lower monthly payments that fit your budget.
Many drivers in Fort Mill, SC, have purchased a used vehicle from us because they know they will get a good deal on a dependable used car. If you live in the Charlotte area, visit our dealership and explore our used vehicle inventory.
