Buying a car involves making some important decisions. You have to choose between SUV, truck, or car as well as the model, make, color, and other features. But the most important thing you need to consider is whether to buy a new or used car.
Is it a good idea to buy a used car? Read on to find out.
Pros of Buying Used Cars
Save Money. When it comes to depreciation, investing money in used cars is a good decision. Most vehicles today depreciate 20 to 30 percent in the first two years of acquiring it. So it’s best to buy a used unit than take such loss with your own money. In addition, there are more options for used cars than when buying a new car. Quality of cars, nowadays, is also improving, so you are sure to enjoy it in 7 to 10 more years.
Extended warranties. Manufacturers are now providing extended warranties for certified used vehicles. It will help you cut the cost if something goes wrong with the car.
Lower insurance rates. New cars come with expensive auto insurance. When you buy a used car, you can save money since you don’t have to pay premiums on the car insurance.
Favorable financing terms and rates. It’s true that people will pay higher interest rates on loans for used vehicles compared to loans on new vehicle. However, automakers today provide better financing options when it comes to offering their CPO cars.
Cons of Buying A Used Car
The only downside of buying a used car is the uncertainty about its history. Tampering or clocking remains an issue in terms of recorded mileage. Cars should have complete record of its service history. However, you can get reassurance through history check if there is no available service history. Just make sure you are dealing with a reliable car dealer before paying for the unit.
Investing in a used car can be risky since you are not sure how long it will last. But there are many reputable car dealers that offer used cars in their best condition. All you need is to do your research before deciding to buy a car, whether used or not. Now that you know the pros and cons of buying a used car, are you willing to invest your money in a slightly used vehicle?