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Friday, March 16, 2018

How to Compare the Cost of New and Old Cars Offered by Auto Dealerships

Next to a home, a car is one of the biggest investments a person will make in their lifetime. The only difference between homes and cars is that most people stay in a single house for the rest of their lives while the average person will go through about 13 cars. With the need for a reliable set of wheels to make the daily commute a little easier, everyone should consider finding car dealerships that offer both new and used cars on their lot.

Having the option to buy a used car can mean extra saving, but that isn’t always the case. Here are some useful tips to compare new and used car prices to get a better deal that fits a set budget:


 Tip 1: Consider Depreciation

Both new and old cars begin to depreciate after a few years. The difference is that the value of new cars tend to plummet faster than that of used ones. A new car can be worth $25,000 in the first year, but after three years its value drops to $15,000; that is a big loss in investment. However, a used car will be priced at $15,000 and after three years a little below $10,000; a smaller value is lost along the way.

Tip 2: Check Your Credit

Just because you have “bad credit” doesn’t mean owning a car is impossible. There are some reputable dealerships that aid potential car owners who have bad credit. The best way to bring down cost of down payment is to offer a trade-in for the current car. It is also good to remember that buying a used car with a low credit score may result in higher interest rates. A dealership can guide you through the process of car loan application even with a low credit score.

Tip 3: Consider Cost of Maintenance and Repair

Most new cars are offered with a manufacturer’s warranty. All repair and maintenance costs are free of charge for the first 3 years or for the first 36,000 miles, depending on the manufacturer. This equals to bigger savings on the repairs. This is a major benefit worth considering for customers who have enough budget to splurge on a new car.

Used cars are usually dismissed because most car owners think they are buying the previous owner’s problem. This might have been true a decade or so ago but is no longer a problem with new used cars. Most cars are built to last over 100,000 miles before needing any repairs and maintenance, so even if it has exceeded the warranty, the vehicle will still be in excellent condition.

As long as the dealership is trustworthy, there should be no issue on the condition and cost of repairs for a used car.

About McLoughlin Chevrolet

Come and visit McLoughlin Chevrolet to see the amazing and affordable new and used cars available. All the information you need to make a wise and confident purchasing decision will be provided. The perfect car that fits your budget is on the lot! Check them out yourself at the dealership that is open from 8:00 am to 8:00 pm, Mondays to Saturdays and 10:00 am to 7:00 pm on Sundays.


Sources:

Compere the Costs: Buying a New Car vs. Used, NerdWallet.com
4 Questions to Help You Decided on a New or Used Car, AutoTrader.com

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