If you plan on visiting Mt. Rushmore, Rapid City in South Dakota is one of the shortest ways of getting there. From there, the historical landmark in the Black Hills is just 30 minutes away. But there are also other attractions near the city, such as Custer Park, Dinosaur Park, Crazy Horse Memorial, and the Jewel Cave, which holds the distinction of being the third-longest cave in the whole world.

There was a time when used cars were not suitable investments. They were only useful as starter cars for people who are saving up for their dream vehicles. But things are different today.

There are a lot of benefits to buying a secondhand car, which is why people still opt for this idea. If you’re looking for used cars Rapid City South Dakota, you can actually find quite a lot of reasonable offers.

When you buy a used car, you can avoid the following traps:

1. Depreciation — There is nothing like the feeling of purchasing a brand-new car. However, you fail into account the depreciation. For instance, in the first year, the vehicle will already lose as much as 25% of its value. So, if you buy a $20,000 brand new car, it would only be worth $15,000 after 12 months. The moment you drive your wheels from the showroom, the depreciation clock starts ticking.
2. Associated costs — When you buy a new car, you compute the purchase price, interest rate, and auto loans into the total cost. The other expenses include document fees and advertising costs. According to this report, maintaining a new vehicle will cost you almost $9,000 per year. A second-hard unit will also cost you less in the registration fee that you pay each year. As a rule of thumb, the registration fee is higher in the first three years.
3. Warranty cover — Warranties are very costly, especially if they come with the purchase price. The disadvantage of buying a new vehicle is that you could not shop around for the third-party insurer. For the most part, it’s the dealer that chooses the warranty.
4. Insurance — Brand new vehicles demand prohibitive insurance costs. Insurance companies compute the value of your premium based on the price of the car. However, they do not take into account the value of depreciation. So, if insurance companies base the premium on the $37,000 price, they would definitely charge more. Meanwhile, in a second-hand car, depreciation is no longer an issue.

Buying a brand-new vehicle will put a significant dent on your budget, especially now when the prices are increasing. In May 2019, the average consumer spent $37,185 for a car in the United States.

Meanwhile, on average, used cars in Rapid City, South Dakota are 50% cheaper compared to brand new ones that you find in other cities.

That means the depreciation will not hurt you as much. For instance, if you bought a second-hand vehicle for $15,000 and sold it two years later for $12,000 at the market value, you only take a hit of $3,000.

If you’re lucky, the used vehicle already features after-market modifications. You would have mag wheels, hot colors, and fresh interiors with a little bit of extra charged by the seller.

With all the above reasons, you should consider second-hand vehicles instead of spending your hard-earned money on a brand-new unit.