Premier Nissan of Fremont provides Fremont, Sunnyvale, and San Francisco with some of the best used cars on the market. Generally speaking, purchasing a brand new car off the lot is not recommended as an investment strategy. This is due to the fact that cars lose the majority of their value very early in their lives. If you buy a new car, you should expect it to lose 40-50 % in the first three years following purchase. Not only are new cars more expensive than used cars, but you can't expect to recoup your investment if you sell it for less than what you paid.
The cost of registration varies by state; however, older cars are frequently less expensive to register. You should expect to pay reduced registration fees for an older car in places where registration rates are established based on the car's age. Furthermore, several states levy yearly taxes that are depending on the age of your car.
Although used vehicles depreciate significantly less than new vehicles, depreciation is an inescapable reality of life. When new cars are driven off the lot, they often lose 20% of their value. Most cars will lose another 10% of their value throughout the first year. In the first year of ownership, the value dropped by 30%. A used car depreciates at a far slower rate than a new car. This is because, by the time you get behind the wheel, the vehicle will have depreciated considerably. Used cars depreciate more slowly than new cars, resulting in a more stable loan-to-value ratio.
Most lenders will require a particular amount of coverage when you buy a new car that you're financing. Your age, driving record, credit score, mileage, and location all factor into the cost of insurance. Insurance for a used vehicle, like the vehicle itself, is usually less expensive than insurance for a new vehicle. If your state allows it, you may wish to opt for just liability coverage rather than comprehensive and collision coverage if your automobile is older.
Every new automobile advertisement ignores the tax issue. New automobiles are subject to state sales tax in many states, but used cars are not. Dealers must add thousands of dollars in sales tax to the cost of a new car. Don't overlook the savings, and before you make a decision, look into your state's legislation on the matter.