If you’re short on cash, buying a used car might be a good option. In case you haven’t thought about this option, you should. It will help you save money and you can definitely get a better deal for a used car over a new one.

It’s Safe

First let’s break the biggest misconception about used cars. Used cars are not unreliable and prone to breakdown – don’t let those horror stories of used cars scare you! It depends from where you’ve bought the car.

The best place to buy a used car is not through a questionable website or a shady dealer even though they offer a huge discount. Rather, opt to buy a used car from a reputable and licensed dealership. This way if you have a problem with the car, you can always get back to the dealership.

Next, go for a refurbished car. This is a car that is tweaked and repaired by the manufacturer and will definitely not give you any problem.

Low Price

The biggest attraction of a used car is its low price. A used car can cost as much as 30-40% lesser than the market price of a new car of the same model. This means rather than buying a Nissan Micra at $10,000, you can spend exactly the same amount and purchase a better car like a Ford Fusion Sport (2009).

Not only are you saving money, but you are also buying a better car that you would have.

Lower Tax

Adding to a sweet deal of a low priced used car, you also have to pay lower taxes for it. The government charges lower vehicle, retail and sales tax because it is a used car.

Lower Insurance and Warranty Rates

While insurance is mandatory from the government, warranty is a must because whether your car is new or used, it may have minor defects.

Leveraging your safe driver record along with a safe used car, you can negotiate a lower insurance rate.

All dealerships will advise you to take a car warranty for your used car and you should. Plus, since it is a used car, you will get access to a lower rate.

Lesser or No Down Payment

If you are buying a used car through a loan, you expect to pay a lesser down payment than you would have to pay if it was a new car. More importantly, you have a better chance at convincing the seller to completely avoid a down payment.

Better Chance of a Loan

Since you are buying a used car, you are spending a lesser amount and you have a better chance of taking a loan. However, that does not guarantee that your loan application will get through. Factors like credit score may hinder your application from being accepted.

It would be better if you apply for a car loan through Insta Auto Loan. Since the whole process is online, it is easy and you will have your car loan approved within 24 hours.

All in all, buying a used car opens you up to a sweet deal.