Buying a used car provides a perfect opportunity to own a luxury brand at a fraction of the cost. Buying used also minimizes business losses and and tax expenditures, claims Auction Export.Continue Reading
Auction Export goes ahead to explain how it is possible to enjoy the benefits that come with owning a luxury car by getting a used one cheaply. For instance, a used Mercedes-Benz costs a fraction of what one would normally pay for a new one.
The value of a new car drops significantly the moment the car leaves the lot, states BizFilings. This drop means the rate of depreciation for a new car is high, which can contribute to business losses. On the other hand, a used car does not register such a high level of depreciation.
Registration fees and taxes are higher for new cars than used cars, declares Money Crashers. States determine the rate of the annual registration fee for a vehicle depending on the value and model of the car. This rate is highest during the first three years, leveling off after five years; therefore, buying a used car eliminates registration fees. State laws require a buyer to pay state sales tax on new cars, but not used ones. This tax runs into thousands of dollars. Avoiding this tax saves the business money every year.Learn more about Buying & Selling