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Home Car-Tech News

Few benefits of buying small used cars

December 1, 2018
in Car-Tech News

The demand for smaller used vehicles is very high which is not the norm. Most people go for larger used vehicles that tend to be considered safer with lower car insurance rates. However, this is not the case in the current market.

photo:Pixabay

It’s not too surprising for the experts, though. They compared this increase in small sales of cars used in the summer of 2008 when gas prices soared. Sounds familiar for the summer 2018,yes?

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The consequences of this market change is that automobile companies are reducing their new Small-Car output. The low bid increases demand for small quantities of new and small vehicles that are available, which means that customers should bid higher to get the vehicle.

This is how the market moves as the sales of used cars are at 2.2 percent, at 13 years high. This also means that prices for small vehicles should increase, 3.9 percent really. It’s just the way to play on the market.

There has also been an influx of out-of-lease cars that flood the market which, as the other numbers show, the out-of-car leasing are absorbed very easily. People seem to be looking for cars used for basic transportation. Another reason is that hurricane victims and the floods of previous storms are using their insurance money and that’s all they can afford.

There are also some other money saving benefits from buying used cars, here are some.

Depreciation

When you buy new, your car can depreciation up to 50% within three years which means losing a lot of value. When you buy used, you don’t have to worry about the depreciation cost.

More value of your money

Without having to worry about depreciation, leave more space in your budget for a better team or even a better model than you would if you were buying new ones.

Variety

Only 350 different models are offered in the new car market per year, but there are many other options on the market used which is good news if you can’t find your dream car in the new market. This means that you do not need to liquidate or pay more just to settle for a vehicle that you are not completely satisfied with.

Less insurance

Your car insurance is based on the value of your car, so it is less expensive with a cheaper car. With new vehicles, they are more expensive, so insurance is more expensive, except then, you should deal with the depreciation in the next three years, too, no matter how well you keep your vehicle.

Cheapest registration Fees

Depending on your location, older vehicles typically cost less to register, which is definitely a bonus.

Tags: benefitsbuying small used carsbuying used cars
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