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New or Used Automobiles: Which is the Better Investment

According to information provided by Kelley Blue Book experts, new cars experience their greatest loss in value within the first 12 to 18 months. In three years, a new vehicle could depreciate to the tune of 73% loss in its value. What this means is that used cars for sale can offer great investment for the buyer when they are purchased immediately after their peak depreciation period.

One of the reasons why used cars are regarded as an investment is that they are purchased at relatively low cost and some could attract warranties. When you buy these cars, you can upgrade to the newer model you want and also fit in additional features on the vehicle.

Spending Wisely

If you want to buy a car, you should not put your money on a vehicle that will depreciate steeply in its use. This is why people are eyeing on used cars as their preferred choice. At most, new cars will retain about 62% of their value after the first 3 years. This period is considered the steep depreciation time of a car’s value.

The first years tend to hurt most in the deprecation of a vehicle. If you want a vehicle that has a good value and can offer you the service you want, then you can consider buying a high quality, late model used car. When you purchase such as car, you enjoy not only lower price but also low registration and license fees. You also enjoy lower depreciation costs because the car will have passed its high depreciation period.

Decisions, Decisions

Apparently, there are millions of used cars you can get in the market. Finding the right car requires you to make critical evaluation of certain qualities and features. The best time to buy a used car is just after it has suffered the steepest car depreciation cost and way before the great maintenance time. It is important that you buy certified used cars as these have been inspected rigorously to ascertain that they are 100 points or more.

This inspection includes major systems and components like steering, brakes, transmission, suspension, air conditioning, electrical and heating systems. The used car you buy should have low mileage. This is because, if you have to commute 50 miles every day to work, this means that you need a car that can cover a good mileage before it develops major problems.

A used car with over 100,000 miles may not be a good used car investment. This is a vehicle, which could get to its major maintenance period soon. Most suitable used cars for sale have averaged less than 40,000 miles by the time they are put up for sale. They can still cover more mileages.

Looking for a Used Car Dealer in New Jersey? Need an author? Contact Stephen Craig