When it is time for you to buy a car, nothing pumps your heart more than the prospect of buying a brand-new sedan. Unfortunately, buying a newly-minted car may be prohibitive for some people. However, don’t worry. You can also get a great deal by getting a used car. In fact, in some ways, a used car may be even better than a new one.
Since your biggest concern is the lack of funds when buying a car, used cars can be an affordable option. It is not uncommon for people to strike a wonderful deal when buying a car that has recently changed hand or has been repossessed. In fact, you can save hundreds, if not thousands, of dollars when buying a used car and you can put this money to good use by making upgrades on the vehicle.
Lower Depreciation Rate
A brand new car will lose about 20% of its value in the first year, 15% the year after that, and then at a lower rate after that. That means that if you can find someone who has used a car for only two or three years, you can buy a car for just 65% or less of its original price.
Lower Car Insurance
A brand new car is an expensive investment so most people take out expensive insurance to cover them, particularly if they are leased. In addition, new car buyers also have to pay a gap insurance in case the car is totaled at a time when they owe more on the vehicle than it is worth. On the other hand, used cars are slightly cheaper to insure and you can also get away with buying a less expensive coverage for it.
Fleshed Out Issues
One of the major benefits of buying a used car is that most of its issues have already been fleshed out and diagnosed. No matter which manufacturer produced that car, most new models have at least one hidden issue that only comes to light once you start driving the car. This is why some people prefer to buy used cars since they understand that their issues will be documented.
Whether you are buying a new or used car, you will need to pay the vehicle registration fees, inspection fees, taxes, and other government fees. However, the big advantage that used cars have is that these costs will be much lower than if you were buying a brand-new car.
As you can see, there are a number of benefits to buying a used car. Having said that, there are a few things you need to consider to make a smart used car purchase.
- The Purpose: Determine whether a car that you like will be able to fulfill your needs. If you have a large family, then a used two-seater sports car may not be a good option. If you have a small baby, the car needs to be child-friendly and should have safety features. Consider the kind of lifestyle you have and buy your car based on that.
- Research: The auto research service, Kelley Blue Book, can help you find the price of both new and used car models as well as offer you expert reviews about a car’s performance and ratings. This will help you find out whether your shortlisted car has all the features that you need and what its price is.
- Vehicle History: A used car will have a documented history, which you can check through its VIN (Vehicle Identification Number) from agencies like Carfax. This will inform you how many years the car has been used, how many times it has changed owners, how much work has been performed on it, and how much damage it has sustained. This can help you determine the condition of your car. If the car is in good condition, it can be a good choice to buy.
- Warranty: If your car is not more than four years old, it may be certified pre-owned, which means its warranty is covered by the manufacturer. However, older cars do not have that warranty. On the other hand, there are many used car dealerships that offer extended warranty for the repairs on the vehicle and can provide you some peace of mind.
- Car Title: One of the key things you need to pay attention to when buying a used car is the car title. If there are no loans or liens on the car, the auto dealership should provide you with the car title. Make sure all the important documents are valid and complete before you buy a car.
- Pre-Purchase Inspection: It is a good idea to get a mechanic to inspect the used car which you are buying. This way, you can be sure that everything about the car, as it should be.
As you can see, buying a used car comes with a lot of benefits. However, it is important that you do your homework so that you reap all the benefits of your vehicle.