For a long time, second hand cars had a very bad reputation. Sure, it made sense to buy a used car for your hoodlum of a son when he got accepted into a semi-decent college through some bizarre stroke of luck – he would probably crash it anyway- but the thought of upgrading to a used car for your own use would have been unacceptable, even if the upgrade meant a bigger, sleeker, more luxurious car. But things have changed now. For one, the economy is in shambles and people have to control their expenses stringently so it is becoming more and more acceptable for people to buy a car that has already been driven for a few years. Another difference is that now buying a used car does not necessarily mean that a slimy, crooked car salesman in his stereotypical polyester suit and shark-tooth grin is going to sell you a scrap-metal contraption that looks pretty on the outside but is actually composed of stolen, sub-standard, rusty parts. Now, consumer protection laws protect your interests thoroughly. Buying a used car has become a safe and financially sound decision for a variety of reasons.
1. Cost:
A car that has been driven for even a couple of years costs dramatically less than a brand new car of the exact same model would. So in effect, you would buy a car that looks new, feels new and save a tidy sum in the process. Deciding to buy a used car could even allow you to own the car of your dreams.
2. Depreciation:
Unlike a used car, the value of a new car depreciates drastically as soon as you buy it. Within the first 3 years alone, a new car’s value could drop by as much as 30 or 40 %. Immediately, the brand new car you bought has turned into a used car. So why not just buy a car that has been used, but will not burn a hole in your bank balance?
3. Credit:
A bad credit history will definitely hamper your chances of being able to buy a car fresh off the press. However, buying a used car will not be a problem since used car dealerships are far more accommodating.
4. Risk and repairs:
Undoubtedly, the chances of a used car having problems and needing repairs are higher since you don’t know how or by whom it has been driven in the past. However, you can buy a car that comes with a three year warranty and have your own garage inspect it before you sign the papers.
5. Warranty:
Speaking of warranties, new cars have an advantage because they usually come with a 10 year/100,000 mile warranty. But the good news is that you can opt to have the warranty transferred, which means that if you buy a car with 20,000 miles on it, you are still covered by the warranty for 80,000 miles.
6. Insurance:
When you choose to buy a used car rather than a new one, you are effectively saving a significant amount of money on car insurance. Used cars give you much better insurance rates than new ones do, especially if you do your homework. Shop for car insurance quotes, but ensure than you don’t opt for a company just because it is the cheapest option. Look into reliable and reputed companies that will handle your claim well, and keep your car insurance low.
Before you buy a used car, make sure you go through the papers with a fine tooth comb and have a trusted mechanic look at it carefully. Become aware of your rights, acquaint yourself with the required details of a contract, and know exactly what to demand by going over the Federal Trade commission’s guidelines for buying a used car.
