5 Benefits of
Buying a Used Car
When some people picture a used
car, they think of a yellow clunker
sitting in the corner of an auto lot
with rusted rims, chipped paint,
and a “for sale: $2,000” sign on the
front windshield. They may
imagine a caricature of a car
salesman with a plaid suit, hat, and
mustache standing in the car lot,
attempting to sell naive customers
crappy cars at high prices.
This image, however, is for the
most part inaccurate. Sure, there
are lemons out there, but many
used car lots are filled with
certified vehicles, and cars that
look like new. If you go the used car
route, as opposed to buying new,
you can actually reap a variety of
benefits. Check out our list of some
of these used car pros.
It’s nice to ride in a car that no one has ever
owned before, with that new car smell and feel.
But, that scent, brand new upholstery without a
single flaw, and single digit mileage doesn’t come
cheap. The price gap between new and used
vehicles was around $20,000 as of earlier this
year, according to Cars.com.
The interest rates on new cars do tend to be
slightly lower than they are on used cars,
however. Bank rate reports the average 48-month
rates on new cars at 4%, while used car rates are
slightly higher — at 4.99%. In spite of the higher
rates, in most cases, you still end up with a much
smaller total bill when you opt for a used vehicle.
Not only do new cars lose a large portion of their
value immediately, they are also precious to new
car owners who feel a gut punch when normal
wear and tear inevitably happens. Some new cars
lose as much as 40% of their value during the
first year. “With a used car, there’s no
depreciation hit the second you roll off the lot.
There’s also less mental depreciation, no need to
worry about the first parking-lot ding or rock chip
in the paint because chances are the car’s
previous owner or owners took care of those for
you,” Car and Driver reports.
When a car depreciates so quickly, this also
heightens the need for GAP coverage (optional
insurance coverage to cover the difference
between the amount of your loan and your car’s
actual value), which is another added expense.
NEW CAR FEES
If you buy a car at the dealership — new or used
— you’re probably going to have fees (like taxes
and DMV fees) tacked on regardless to the
condition of the vehicle. You may also see random
other fees, like processing, preparation, and
advertising fees, which can add up to a hundreds
of dollars. If you buy a used car from a private
party, however, you can avoid some of theses
VARIETY (YOU CAN BUY ANY
MAKE OR MODEL YEAR)
Do you have your eye on a 2005 Jeep Wrangler?
Maybe a 1979 Mustang Turbo is the car for you?
If you’re looking for a specific, older model, odds
are you’re not going to find it in new condition.
If you buy a used car, as opposed to a new car, you
have a much wider selection of inventory to
choose from and you’re not limited to models that
were released over the past year or two as you
would be when buying new. You have a virtually
endless supply of inventory to choose from.
These days, used car shopping is a different
experience than it was in years past. Consumers
have a plethora of information and resources
right at their fingertips. If you want to know a
car’s value, you have sites like KBB.com available
where you can search for the value of a specific
year, make, and model in various conditions.
Sites like CarFax allow you to find out historical
information about specific vehicles.
You can even find out the experiences of
thousands of other car-buyers who purchased the
same vehicle you have your eye on. Were others
happy with their purchase? Did anyone
experience problems with the vehicle? What
about the dealer? This information has made it
possible for used car buyers to find out more
information about prospective vehicle options
than ever before.
Article Source: CheatSheet
Image Source: callaghanmotors.com.au