Buying a used car offers a lot of benefits and at the same time a few risks. So, if you are planning to buy a used vehicle either from a private seller or from one of the used car dealerships in your area, make sure to do your homework first prior to the actual purchase. It would be better for you to conduct the needed research and determine that existing pros and cons involved. Make sure to weigh the pros and cons before doing the actual payout. In order to help you assess things up, this hub provides some of the advantages and disadvantages of buying a used car such as the following.
Used Car Buying Pros
1. Used cars are cheaper
One of the most obvious advantages that buying a used car could provide is the cheap price. Most buyers prefer to purchase used cars since these are thousands of dollars cheaper than the brand new ones. This is the main reason why buyers with limited budget opt to purchase vehicles that are about two to three years old. These buyers don’t really need to spend that much in order to buy what they want. They could also maximize the savings from doing such if they know how to look for the cheapest used car model in some of the dealerships’ lot.
2. You might end up buying a well-equipped model
Buying a used car is also advantageous since the chance of finding a previously-owned car which is loaded with a lot of features especially those that are offered as optional items for the latest models. The good thing is that, you will no longer be required to provide additional payments for these extra features since the seller will just require you to meet the selling price that he has attached on his vehicle. This particular condition is not possible when buying a brand new model since every optional features included on the vehicle have their own prices and each of these are added up to the final sticker price of the new car.
3. Allows you to save on insurance costs
Finally, buying a used car could help you reduce the insurance cost. Brand new car models are usually sold with full insurance coverage as one of the requirement and this is quite expensive. Buying a used car on the other hand allows you to select the insurance coverage that you would be paying. Due to this, you can only secure a policy which involves the coverage that you think is necessary and a good example of this is the liability insurance coverage. Thus, you are given the chance to earn a significant amount of savings from reduced insurance costs.
Used Car Buying Cons
1. Used cars depreciate fast
Most car experts will not encourage buyers to purchase used cars since these vehicles depreciates fast. Based on recent calculations, majority of the brand new car models lose almost 47 percent of their real value in the first three years. After the next three years, the vehicle will further depreciate by 18 percent and based on this, you will most likely have a hard time selling the used car that you have purchased when needed. What’s worse is that you might end up earning zero profit when you decide to sell this.
2. You might end up buying a lemon
Another disadvantage of buying a used car is the greater possibility that you might end up buying a lemon or a vehicle with a poor running condition. Since the car was used by the previous owner for a few years before you purchased it, some of the vehicle’s component might have been damaged and before you know it you already paid the entire amount. Due to this, you will be incurring higher maintenance and repair expenses instead of earning a lot of savings from buying a vehicle at a cheaper price.
3. Used cars are not covered by warranties
Finally, buying a used car is not always advisable since this is not covered by warranties. In the event that the vehicle breaks down or is in need of major repairs, you will end up spending more since you will shoulder all of the expenses involved in having it repaired.
In addition to this, the vehicle will certainly need more repairs compared to brand new one because it was previously used by its first owner and the broken or defective components of the vehicle would most likely break down by the time you were able to purchase it.