Second hand cars have had a bad reputation for a long time. It was logical to purchase a used vehicle for your son, but it would be a terrible idea to upgrade to a more spacious, luxurious, and sleeker car. Things have changed. One, the economy has collapsed and people must be more careful with their spending so it is more common for people to purchase a car that has been driving for a while. A second difference is that buying a used car doesn’t necessarily mean that a slimy and corrupt car salesman, in his stereotypical polyester suit with shark-tooth smile, will sell you a scrap metal contraption that is made of stolen, substandard, rusty components. Consumer protection laws now protect your rights. A variety of reasons have made buying a used vehicle a financially sound and safe decision.
1. Cost:
A car that has been used for a few years will cost you significantly less than a newer model of the same car. In effect, you will save money by buying a car that looks and feels brand new. You might even be able to purchase the car you want by buying a used car.
2. Depreciation:
A new car’s value will drop dramatically, unlike a used one. A new car’s worth could plummet by up to 30% or 40% within the first three years. The brand new car that you just bought is now a used vehicle. Why not buy a used car that is still in good condition but won’t break the bank?
3. Credit:
Bad credit history can make it difficult to purchase a new car. However, buying a used vehicle will not prove difficult since most used car dealers are more accommodating.
4. Repairs and risk:
You can be sure that a used car will have problems or need repairs because you don’t know the history of its previous owners. You can purchase a used car with a three-year warranty, and have it inspected by your garage before you sign the papers.
5. Warranty:
New cars come with a 10-year/100,000-mile warranty. The good news is that the warranty can be transferred. This means that even if your car has 20,000 miles, it will still be covered for the full 80,000 mile warranty.
6. Insurance:
You can save a lot of money by buying a used car instead of a new car. If you do your research, used cars will offer you better rates than new cars. Compare car insurance quotes. But don’t just choose the cheapest company. You want to make sure your car insurance is low by choosing reputable and well-respected companies.
Make sure to carefully go over all paperwork before you purchase a used car. Learn about your rights and the details required for a contract. Also, learn what you can ask by reviewing the Federal Trade Commission’s guidelines for purchasing a used vehicle.
Bethany Collins is a home-based worker and a mother to two very naughty children. She lives with her husband. She is a single-passionate reader and has a passion for topics related to personal finances, car insurance, etc. She enjoys writing about topics such as managing your budget and getting car insurance quotes.