After years of economic uncertainty, things are finally looking up for residents of Nevada. The jobless rate is the lowest it’s been in eight years, according to CNBC, and construction of a new resort is expected to bring 13,000 jobs to Las Vegas within a few years.
Consumers who have been hesitant to make big purchases may now feel more secure in spending money on big-ticket items. And when it comes to buying a car, you actually don’t have to spend a fortune to get a reliable ride.
If you’ve been holding off on buying a car, here are five reasons you might want to buy a used car in 2016:
1. You want to be ready for opportunities.
Public transportation in Las Vegas is, well … maybe not what you’d hope for in a world-class city. It’s fine, if you’re visiting casinos. But when you live here, you’re probably going to need a car – especially if you want to expand your job opportunities.
In the coming years, more businesses are expected to open or expand in Clark County. For example, Dignity Health is set to open a new hospital in North Las Vegas, bringing 100 jobs to the region. When you have your own car, you can look for jobs that may be off the bus line, and if you work in the service industry, you don’t have to worry limited public transit schedules interfering with your ability to get to and from work on weekends or holidays.
2. Your job requires a car.
Driving a car to and from a job doesn’t mean your car is a necessary business expense. But if you have a job that requires you to haul supplies every day – house painting or housecleaning, for example – you need a dependable car.
If you buy a vehicle this year to use for both private and commercial purposes, you may be able to deduct part of the purchase price on your 2017 taxes (along with your mileage and gas costs, insurance, loan interest and other expenses).
3. Dealerships may offer discounts.
Salespeople at car dealerships usually have a sales quota they’re expected to meet, and that quota may be monthly, quarterly, yearly or any combination of timeframes. As the end of the year nears, dealerships may mark down existing inventory, and sales representatives might be more willing to negotiate a price, in order to meet sales goals.
One point worth noting: The annual retail calendar for 2016 actually ends on Jan. 5, 2017, which means you might still find great deals at the very beginning of 2017. However, if you plan to claim the purchase as a business expense on your 2017 taxes, you’d have to buy your car this year.
4. Used cars are a better value.
When you buy a new car, the value of your car may depreciate 10 percent the moment you drive it off the lot, according to CARFAX. A new car continues to depreciate rapidly in the first five years before depreciation slows. So when you buy a car that’s at least five years old, its depreciation has already leveled off considerably, meaning your car will lose value more slowly than when it was brand new.
5. You want to save money.
Nevadans don’t pay income tax, so the state assesses several car-related fees that help fund roadways. When you buy a car in Clark County, you’ll pay 8.1 percent local sales tax on the purchase. To register your vehicle, you’ll pay a registration fee, a supplemental governmental services tax and a governmental services tax. Those fees are due every year when you renew your registration, and the governmental services tax is based on the price of your car.
A costlier car means higher annual fees – and that applies to your car insurance, too. Buyers sometimes don’t realize how fees and insurance costs can add to the overall price of car ownership, and they may end up falling behind on car payments or necessary maintenance, due to financial strain.
When you buy a car at J.D. Byrider, our sales team will work with you to determine what you can afford. Our fleet of well maintained used cars offers the comfort and convenience of new cars, without the financial worries. Stop by our Las Vegas location today to ask about easy financing options.
Daniels, J. (2016, March 17). Nevada economy plays winning hand: Here's its secret. Retrieved from CNBC: http://www.cnbc.com/2016/03/17/nevada-economy-plays-winning-hand-heres-its-secret.html
Nunley, K. (2016, March 2). New businesses coming to North Las Vegas include a hospital and Cracker Barrel. Retrieved from 3 News Las Vegas: http://news3lv.com/news/local/new-businesses-coming-to-north-las-vegas-include-a-hospital-and-cracker-barrel
Business Use of Vehicles. (n.d.). Retrieved from TurboTax: https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Business-Use-of-Vehicles/INF12071.html
National Retail Federation 2016-2018 Retail Sales Reporting and 4-5-4 Merchandising Calendar. (n.d.). Retrieved from National Retail Federation: https://nrf.com/sites/default/files/Documents/4-5-4%20Documents/3%20Year%20Calendar%2016-18.pdf
Car Depreciation. (2015, April 6). Retrieved from CARFAX: https://www.carfax.com/guides/buying-used/what-to-consider/car-depreciation
Saeed, C. (2013, Nov. 8). Study Reflects What Car Owners Pay in Clark County… and Why. Retrieved from the Allstate Blog: https://blog.allstate.com/car-ownership-costs-study-reflect-what-car-owners-pay-in-clark-county-and-why/