Buying Used Car – Wise or Foolish Decision?

In this fast-paced world, traveling from one place to another on time is a necessity. As a result, owning a car becomes a necessity in turn. Now, the question arises, if owning a car is a necessity, then the first question that comes to our mind….

“Should we go for a new one or try buying a second hand one?”

Your pocket will thank you if you buy a used car.

Benefits Of Buying A Used Car

1.The Law of Depreciation

Suppose you go to a car store in Waipahu. The moment you take the car out of the showroom and drive it heading to your home, it loses 20% of its value. After 1 year, it will lose another 10% of its value. So within a year, a car faces a 30% depreciation in its value. Thus, a car is not an asset, it is a liability.

To overcome this, buying a used cars in Waipahu is the most optimal option. Since a car loses 30% value within 1 year, you can use this problem and make it a solution – you can buy a one-year-old used car. This will save you a lot of money.

Benefits Of Buying A Used Car

2.Insurance Cost-

We all know that the value of a car depreciates as time progresses. Keeping this thing in mind, now consider the fact that insurance companies in case of a car wreck shell out money thta reflects the current value of the car. So, a new car, if wrecked, will attract high insurance pay-out. For this, insurance companies intentionally keep the premium on a new car higher.

3.Lots Of Options To Choose From-

Over the years many cars become depreciated and are sold as used. But comparatively few new cars are released every year for sale. You will find a wide variety of cars being sold in Waipahu. New cars cannot provide such variety.

4.Low Sales Tax

A new vehicle has a high price and as a result buying, it will attract a high sales tax. Lower prices will result in lower sales tax at the time of buying.

There are many second-hand or used car stores in Waipahu. One should check some things before buying a new car. First of all, check whether the chassis number and engine number match those written on the registration paper. A thorough examination of the current insurance paper’s of the car will reveal if the car ever had an accident. Check the brakes and filters of the car before buying. Cars whose body parts do not align should not be bought as it is an indication of a past accident.

A car is not an investment. It is wise, therefore, to avoid spending money on a new car.  Journey matters, not the car.