When it comes down to it, purchasing a used vehicle opposed to a new vehicle can save you money in many different ways. A used vehicle can be reliable and affordable at the same time. There are many different ways that a used vehicle can save you money. Just to name a few, a used vehicle will cost you less and insurance, less in taxes, and less in car payments. Craigslist cars for sale is just one of the many ways you can purchase a used car or truck and get the most for your money. When it comes to searching Craigslist for cars, it is fairly difficult to find a better deal.
Insuring a vehicle can be a huge monthly expense. The amount that you pay in car insurance depends on several different factors. One of these factors is whether or not your vehicle carries comprehensive insurance or liability only. Full coverage insurance is of course the most expensive insurance to carry and is mandatory whenever you finance a vehicle. You cannot purchase a new vehicle without paying for full coverage insurance. When you purchase a used vehicle for cash, there is no need to carry comprehensive insurance. In most states, you can simply carry liability only insurance which is significantly less per month than full coverage. With liability only insurance, your vehicle will not be covered in the event that you cause an accident, but it will cover the other person’s vehicle. In general, if you drive a fairly inexpensive, vehicle you may want to consider carrying liability insurance. In the automotive industry, a general rule of thumb is that you should not have comprehensive insurance when the additional annual cost of full coverage exceeds 10% of the value of your vehicle’s book value. For instance, if you drive a vehicle that has a book value of $2000, you can spend up to $200 or an additional $16 per month before you should consider dropping your full coverage.
A used vehicle will, in general, cost you less per year and vehicle taxes. The reasoning behind this is simple and that is because in most states, the amount of tax that you pay on a vehicle is determined by the vehicles book value. The older a vehicle gets, the less it is worth as far as book value. In essence, you will pay less in vehicle taxes. When comparing two vehicles of the same make and model, the owner of an older vehicle will always pay less in vehicle tax when compared to the newer vehicle. While this amount may seem nominal, it is one more way to save money by purchasing used.
Perhaps the largest savings when it comes to purchasing a used car from Craigslist is reducing or even eliminating your monthly car payment. Today, the average cost of a new motor vehicle is around $30,000. Once you factor in financing charges over the course of five years, you are looking at paying at least $400 per month. This can be a fairly large chunk of change, especially in today’s economy. When purchasing a used vehicle for cash, you will of course not have any car payment. If you purchase a vehicle for a few thousand dollars and finance it, your monthly payments will be less than half what a new vehicle would cost per month.
Purchasing used cars on Craigslist cars for sale is obviously the better choice financially. Overall, you can save several hundred dollars per month by purchasing a used vehicle and never have to worry about making a car payment again. Start by searching Craigslist for cars in your area and start saving money today.