It’s appealing to think about driving off the lot in a brand new car no one else has driven that barely has any miles on it. However, there are often hidden costs you just don’t think about when you’re staring at that shiny new car on the lot. While there are expert tips on buying a new car that can help you keep your costs reasonable, finding the best certified pre-owned cars can be a more cost savvy choice.
1. Is Leasing a New Car the Best Idea?
Some people think leasing is the best option for getting a new car without taking on the high payments that often come with buying one. However, leases are often filled with hidden charges, such as damage fees upon the return of the vehicle. Buy-out costs can also increase the overall amount you spend on your car. For this reason, buying a newer used car can be the best choice.
2. Check Local and State Taxes
Depending on where you live, it’s important to consider the taxes you will pay on your vehicle. Laws dictate car buyers should be charged the tax for their home state and city, not where they buy the car. It’s important to carefully review your financial documents to ensure you are paying the appropriate amount of taxes per the law.
3. Insurance Premiums
The cost of replacing or repairing a new car is often significantly higher than older vehicles. This is why the insurance premiums on some new cars can be more expensive than for pre-owned cars. This is one of the most important factors to consider when buying a newer car. Talking to your insurance agent before buying can help you make the smart decision.
4. Depreciation
While not a direct cost, many people fail to consider the significant depreciation vehicles undergo when they are new. This is one of the biggest reasons car owners should consider buying used, even if it’s one that’s only one or two years old. These cars have already experienced the high level of depreciation so the value will decrease much slower.
5. Dealer Fees
Many dealerships charge a fee on top of the sale price, taxes and other fees associated with buying a new car. Be sure you ask about these fees before you buy because some dealers will add them in without pointing them out.
When you’re thinking about buying a new car, it’s necessary to make sure you fully understand the hidden costs often associated with newer cars. The best certified pre-owned cars may still come with some additional costs, but the overall cost of buying one can be lower.
If you’re looking for the best certified pre-owned cars on the market, contact us. Our selection of used cars will give you all the options you’re looking for.
