Are you looking to buy a used car?
You might not know it yet, but you’re on the cusp of making a smart decision. Buying a used car makes sense on both the financial and motoring fonts. The rapid depreciation rate of a new car is disheartening, with experts saying they lose 20 percent of their value in the first year.
A used car doesn’t depreciate as much and as long as you’re diligent, you’ll get a quality car that will serve you well. But what’s the used car cost? Can you afford it?
Continue reading to learn more about the cost of used cars.
What’s the Average Cost of a Used Car?
A good number of prospective used car buyers assume that the used car market offers them a prime opportunity to snap up a car at a throwaway price. While it’s possible to buy a dirt-cheap car in this market, you’ll certainly be paying for what you get. Don’t be surprised if such a car stopped running after a few hundred miles.
The truth is used cars don’t come cheap. In May, the average cost of a used was $25,000, a $2K increase from April 2020.
$25,000 isn’t pocket change. If you’re anything like the vast majority of Americans, you don’t have this kind of money sitting around in your account. This is why the vast majority of Americans buying a used car today go for some form of financing.
Of course, this is just the average cost. The amount you’ll pay can be much lower or higher, depending on the following variables:
Age of the Vehicle
A used car is a used car, but a used car that was manufactured in 2010 isn’t the same as a used car that was manufactured in 2020(same make and model). A newer, used car is going to cost a lot more than an older car.
The newer vehicle is likely to have lower mileage and a host of new automotive technologies, which will drive up the asking price.
If you’re on a tight budget, it helps to focus on cars that are a bit older.
Make and Model of the Vehicle
Different car makes have different build quality, automotive technology, and safety and reliability ratings. Some car models are built for luxury while others are built for convenience.
If you’re eyeing a luxury car that’s used, expect to pay top dollar, especially if it’s one or two years old.
Older luxury cars might be on sale at a lowly price, but keep in mind that the cost of a used car isn’t just the cash price. You have to factor in the cost of keeping it running. Serrajackson.com has an informative article on how much a used car will cost you before and after purchase.
Don’t Be Caught Unawares by Used Car Cost
Used car cost varies depending on the age, make, model, and mechanical state of a vehicle. While the purchase price will always be a significant amount, don’t forget to think about the money you’ll spend on repairs and routine maintenance.
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