Besides your home, buying an auto will be the most costly purchase you will ever make. Sure, you will find some overpriced used cars or bargain buys on the brand-new cars, but it is not only the sticker price, which makes the new vehicle a waste. Associated fees, losses in the value and subsequent costs add up to plenty of dollars over first some years of the new car ownership.
Used Cars: Lower Cost and Less Depreciation
Remember old adage that the new car loses plenty of dollars in its value the time you drive this off the lot? Still it is true, and for this reason, Used cars in el cajon are the good bargains. Think of an average price of purchasing new. The research shows that an average cost of the new car was $25,536 before the fees and taxes. That car can be worth over $13,000 now.
Sales Tax on the New Cars
Any ad for the new car glosses on the tax issue. Lots of state laws actually subject the new cars to the state sales tax, however, not the used cars. When you buy the used car from private seller, you will not owe any kind of sales tax. Comparatively, sales tax that the dealers need to add to price of the new car will be plenty of dollars. Do not underestimate savings, or research the state’s laws on subject before making the decision.
Falling On the Registration Fees
In many states, rate of the annual registration fee will be based on the car’s value and model year. Rate is much highest in first 3 years, and levels off after 5 years. Suppose your state has got same rules, you will save around thousand dollars just by avoiding new car registration costs and buying the car that is three, or five, years old.
Instead of going to the dealer fees and purchasing new, take on the powerful role when you are in this market to buy the used car. You are having the better case to negotiate when you will tell the private seller you will walk away from the old car.