Written by T.C. | Posted in Automotive

When it comes to selecting a car, whether new or used, you are going to want to weigh the pros and the cons of each type of car, to determine if you can save yourself a bit of money on the purchase. There are a lot of reasons that used cars reign supreme over purchasing a brand new model, with the main deciding factor being cost. Insurance is also cheaper on a used vehicle, with the rates often being cheaper by 50% or more depending on the type of vehicle you purchase. This means that over the course of your cars life, you are going to be saving a lot of money.

Initial cost is one of the biggest advantages that used cars have over purchasing a new model, or even leasing a vehicle. It is shown that a new vehicle depreciates dramatically in the first 2 years, especially the first 3 months when they lose almost 10% of their value. Because of this, used cars are a lot cheaper, especially models that are 3-4 years old because the first owner has already paid for the initial depreciation. These are by far the best types of cars to purchase, because they are still considered new, but don’t have the new car sticker price.

Another area that used cars have an advantage over leased vehicles, and new purchases is in the insurance costs. When you purchase or lease a new vehicle, you are required to carry full coverage insurance to help protect the bank from any accidents that you may be involved in. If the car is totaled, they are going to want their money back, and providing full coverage insurance is the only way to do this. With used cars, you only have to carry personal injury protection to cover yourself, as long as you have paid for the vehicle out right and are not leasing or financing it through a bank.

You can see from just the initial cost, as well as the premiums on insurance coverage, that used cars hold the advantages over purchasing or leasing a new car or truck. New cars and trucks lose a lot of their value in the first few years of their lives, which means that you can save yourself a lot of money. Cutting back on your insurance rates is another area where purchasing a used car for cash can be a great long term decision.

Find used cars and used car websites in your local area. If you are in Wisconsin, then search for used cars in Madison, WI.

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