Higher transaction prices for new cars in the US should be another reason you should consider buying second-hand vehicles.
According to Kelley Blue Book analysts, the average price of a new car rose by $583 to $36,113 in December 2017. Analyst Tim Fleming said that this represented a record-high growth of almost 2% year over year.
Kelley Blue Book based its findings by comparing prices from nine car makers and different car segments. The average transaction price for General Motors vehicles such as Buick, Cadillac, Chevrolet or GMC amounted to $40,016 in December.
This ranked as the third most expensive. Volkswagen Group’s Audi, Volkswagen, Porsche cost the highest at an average of almost $40,700. Hyundai’s Kia model cost the lowest with an average of $25,546.
If you live in Florida, you could spend the money you save when you buy a pre-owned GMC in Bradenton or a Kia in Miami on car insurance. State laws mandate owners of vehicles with four or more wheels to have insurance.
Florida’s insurance laws require car owners to have at least $10,000 for personal injury protection and another $10,000 for property damage liability. This is according to DMV Florida. Those who have committed certain violations or have been in car collisions might need to purchase bodily injury liability coverage.
This type of insurance involves a 10/20 payment scheme, which means that the insurer will cover between $10,000 and $20,000 per person for injuries caused to another person. Other factors for the insurance rate include your age and the type of car under your name.
The advantages of buying a used car only apply if you think that the benefits outweigh the costs. Are you still considering buying a new vehicle in 2018?