One of the most significant ways that a used car will save you money is in the realm of insurance. To be sure, auto insurance is kind of a mysterious formula that uses a host of different criteria. One of the most important data points that is considered, however, is the age and value of your car.
After all, a newer and more expensive car will be more expensive for your insurer to repair or replace. Therefore, they will want more money from you so that they don’t go bankrupt from fixing your new car. In addition, if your car is totally new to the market, insurers may not have enough data to accurately determine how much various repairs will cost, which could drive up your premiums even further.
Along those lines, buying a used car gives you the power of information when it comes to insurance. Before you purchase a used car, you can check to see which models are more expensive to insure and which models don’t cost quite as much to insure. If you purchase a new car, you often don’t have this luxury of hindsight.