Advantages of a Used Car Over a New One
South Dakota is known for being the fifth least populous state. Thus, the place offers plenty of space to roam. While the bus service deems limited in the area, having a personal vehicle is indeed a necessity. This reason is why acquiring a secondhand car can still help locals with their daily routines.
Rapid City opens the way to Mount Rushmore and the Black Hills mountain ranges. From here, you can fan out to the different iconic destinations in the midwest. The central location of Rapid City makes it the hub for both business and travel.
Most residents of Rapid City own a car or two. It is not only for convenience but also for emergencies. You will wish you own a car when you encounter an emergency, and there is no public transportation available.
Besides, one of the advantages of buying used cars rapid city South Dakota, is letting the original owner absorb most of the depreciation hit.
The value of a brand-new car starts depreciating the moment you take it out of the dealership. Even the Internal Revenue Service recognizes this by allowing companies to factor in depreciation when computing the taxes for their fleets.
Although there is no hard data, it is safe to say that your brand-new car will depreciate its value by 20% in the first year alone.
Once the depreciation has bottomed out, you can sell a used car for much the same price that you bought it.
Here are some benefits of a used car over a new one:
- You get amazing deals on financing — With depreciation out of the way, you can still finance your vehicle through your credit union or local bank. You can also find some zero-interest loans to take out an old car. However, a better option would be to save money to buy a used car. This way, you would not have to worry about the monthly payment for your loan. If you take out a loan, the payment period is shorter. It means you get out of debt sooner rather than later.
- You pay lower insurance — Typically, insurance companies are hesitant to cover cars that are over ten years or older. However, you can still find insurers who are willing to cover even 20-year-old vehicles. Vintage cars, for instance, require premium insurance because of their value. Nevertheless, because of the depreciation, the amount you pay your insurer will be lesser for older cars compared to the brand new one.
- You maximize the value of your money –– One common misconception about buying old cars is they break down a lot. However, you can always choose a certified pre-owned vehicle from several dealerships. These certified pre-owned cars undergo strict screening from mechanics, and they also come with a warranty from the dealership. Also, with the technology featured on the newer models, they are not prone to breaking down unless the mileage hit over 100,000 miles. Most modern cars today are designed to run for 200,000 miles without any significant issues.
- Lower customization costs — After-market modifications are generally cheaper compared to buying from the dealership. Now that you are no longer concerned about losing the warranty, you can find the most affordable garage to install your desired customizations.
Another advantage when you opt for used cars in Rapid City, South Dakota is purely mental. The break-in period is already over, so you have no worries but pushing down on the gas. Also, you enjoy a certain kind of freedom since you do not worry too much about dents and scrapes when you drive around.