A vehicle is a depreciating asset, meaning it tends to lose value over time. According to Kelley Blue Book, a new car loses 20% of its value in the first year after purchase. Within the first five years, that number grows to 60%

Pros of buying used

• Less expensive: Used vehicles’ primary benefit is that they tend to be less expensive than their new counterparts.
• Lower insurance costs and fees: Many pre-owned cars carry lower insurance rates, titling fees and sales taxes.
• Slower depreciation: Used cars also depreciate much more slowly.

Purchasing a used car over a new vehicle is a great option for many drivers. As inflation rates in the U.S. soar to record-high numbers, Americans are seeing its effects at the grocery store checkout and at the gas pump. And with the new vehicle costs averaging close to $48,500 in August 2023, according to Kelley Blue Book, now might be the perfect time to save money by buying used.

Buying used will save you money 

Going for a used car rather than a new one can save you big bucks in several ways. A used vehicle will cost less based on sticker price alone — but that’s not where the savings stop. You will also be reaching for your wallet much less than if you drove a brand-new vehicle in terms of fees, insurance and vehicle depreciation.   

The average monthly payment in the fourth quarter of 2023 for a used vehicle is $532, while drivers financing a new vehicle paid $738, according to Experian. Saving more than $200 a month adds up quickly. While paying a lower purchase price for the same car model of a different year is the obvious reason to buy a used car, there are others as well. 

Lower dealership fees

Just as insurance varies by ZIP code, the expected fees that come with your used vehicle are not created equal across all 50 states. But they are less expensive than the fees associated with a new vehicle because the cost of the vehicle is less in the first place. This is especially true for any sales tax that you may have to pay.  

 

Aloha Motors is located in Santa Cruz CA and offering amazing used cars at great low prices.  We have been in the automotive business since 2013 and our staff has many years in the automotive industry.  You can rest assured that we will do our best to get you the best price and also the best deals on your auto loan.  We are a family owned business that makes our customer satisfaction its main priority regardless if you’re buying a car or not.  

You can come in to Aloha Motors and test drive any of our cars without any commitment or pushy sales guys like the other dealerships.  We offer extended service contracts and warranties on all of our vehicles.  Our cars for sale range from Honda, Ford, Toyota, Subaru, Chevrolet, Acura, Nissan, Mercedes and more.  If you’re looking for a used truck in Santa Cruz, we have those too!

If you have any questions about the sales process or about financing your next vehicle, feel free to give us a call (831) 400-5188 and learn more.
https://www.alohamotors.net/