What Makes a Used Car Worth Investing in?

Everybody dream of getting his hand on a brand new car but to be very true new cars may seem compelling but they are not the best choice when you are low on budget or want a second car for the family. Getting behind the steering of a new car is dream of many but looking at the depreciation rate of the new vehicle it is not wise to invest a big amount on new car. Instead the best option people can opt for is buying a used car because there are many points to support the statement. But before catering to the points there are things that people have to keep in mind before buying a car:

1. Budget:
   Obviously the most important factor because you cannot just get out of the home, swing by a dealership and park a Lamborghini in garage.


2. Purpose:
   Buying a car generally has a purpose behind if you are not super rich. Most of the people are average income earners and there is a purpose behind every purchase they make. Some opt for 2 seater vehicle while some look for extra luggage space, some look for a family car like dodge grand caravan Toronto while some look for off-road capability of the car.


3. Frequency of changing car:
   This is also important because every person has different mindset. Some love their car and keep it for 20 years and there are also people around us that change the car in 2 to 5 years. So frequency of changing the car is also an important factor to keep in mind before buying used cars Toronto.

Now coming to the main point of what makes used cars worth investing in?

Cost less than brand new vehicle: Well this is the obvious reason why used cars are given the much hype. The cost difference between a brand new car and a used car is significant enough to opt for used car instead of brand new car obviously if you don’t have made up your mind to buy only a brand new car. The cost difference is so much that the buyer can maintain the used car for years if not decades. So the used car buyer gets dual benefit. First he has to pay less for a vehicle and second the cost of maintenance can be covered by the cost difference between a new and used car.

Low depreciation rate: Now this is something everybody knows about but still don’t pay attention to. The moment a new car rolls out of the dealership it starts to depreciate. And year on year the car depreciates, making it a costly affair for the buyer. For a person with budget concerns it is not a wise decision to make. New car depreciate a lot faster than used car and start to lose its value significantly after 3 years.

Low Maintenance cost: Cost of maintenance of new car is more than the used cars. Even a scratch, dent, bruise on the body can cost hundreds of dollar to get fixed. But this is not the case with used cars.

Low insurance premium: The insurance cost of used cars is very low as compared to a new car. This is because used cars already have depreciated value and based on their current condition and market value the cost of insurance is decided.