5 smart reasons for buying a used car

Reducing insurance costs
3 of 7
Reducing insurance costs

Nerad says a key factor in determining the cost of car insurance is the value of the car. Because a used car has less value than a newer version, the cost of insurance should be less. Reed says even more money can be saved because some elements of car insurance can be dropped.

"Collision and theft: Once a car is old enough, you can do away with those if you choose," Reed says.




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