Purchasing a car is the second largest financial investment made by US citizen other than housing, so it is important to determine if buying a used car is your best choice.
Here are a few of the top Pro's & Cons of buying used cars:
- The immediate major depreciation was taken by the original car buyer. The depreciation value averages at 30% of its new value within three years
- Insurance costs are lower
- A used car could provide more flexibility in price. In addition to the car purcahse, you could more easily afford add-ons, and set money aside for an extended used car warranty or other upgrades that could help your car outlast your needs.
- More negotiation room
- Buying from private parties can mean getting great deals
- If you are looking for something specific, the options available are limited
- You have little proof of how the car was treated.
- Difficulties negotiating fair financing terms.
Buying a used car can waste your money. Be a wise used-car buyer through comparing dealerships, and have awareness of the car’s true market value. To land the used car you want at the price you want, you'll need to do plenty of research. Start by hopping online.
A few websites to check out include; Edmund's Automobile Buyers Guide, AutoSite, Kelley Blue Book, and CarPrice.com. These sites offer timely pricing information as well as negotiating tips.
The pricing numbers you find on these sites are good starting points.
Focus on vehicle durability if you plan to keep it for several years. Avoid vehicles with a history of lengthy repairs. To do further research on this you can visit Consumer Reports or Kelley Blue Book to review articles of some of the best used cars that have performed well in reliability studies, as well as from consumer feedback.
Happy Car Shopping!