Each year, out of all the vehicles bought in the U.S., 41
million are used cars compared to only 16 million new car
purchases.
Since purchasing a car is the next financial investment made by
US citizen other than housing, it is important to determine if
buying a used car is worth your money.
1) CONS - Here is a list of the disadvantages of used-car buying:
* The options of cars are limited, so the search for the right
vehicle could be lengthy.
* The buyers have no idea if the car was treated. Used cars
usually have worn consumables such as hoses, tires, shocks,
filters, fans and clutch.
* Although used car dealers provide a warranty, it is only
limited to a couple of months unlike purchasing a new car with
full warranty. Certain maintenance on your purchased second-hand
car could be more expensive.
* Purchasing a second-hand vehicle would offer you a lower
trade-in value.
* The main disadvantage of purchasing old cars is that it has an
unknown quantity. Whether the dealer has worked the vehicle to
make it attractive for the test drive, the buyers are still
unaware of the repair bills, economical issues, and its reliable
transportation.
* It is difficult to negotiate fair financing terms on an older
vehicle.
2) PROS - On the other side, buying a used car could benefit the
buyer in several ways:
* The original owner of the car received the depreciation hit.
The market value of the new car decreases from year to year. An
average 30% of its value within three years from the time it was
bought, so buying their car would save you a lot of money.
* Unlike purchasing a new vehicle with high insurance fees, you
will receive a lower cost of insurance if you choose to buy
second-hand cars.
* Although buying new and used cars both provide loans, lease,
or money-saving the majority of dealers who sell used cars often
have shorter loan terms.
* If your investment is decided based on appearance and gas
mileage, choosing a used car would guarantee the value and
reliability it has provided over the years.
* A used car would provide your dollar more flexibility.
Compared from buying a new car that would eat all your finances,
buying a second-hand car would allow you to purchase other
accessories such as air conditioning that would cost
approximately US$200 to $900 extra.
Buying your used car could waste your money if you fail to do
your research, compare dealerships, and be aware of the car's
market value. Be a wise used-car buyer.
About the author:
Gregory Ashton, your resident automobile enthusiast, bringing to
you over 20 years of vehicular passion, and expertise; presents
for your approval his insider secrets on selecting, buying, and
maintianing the car that is ideal for you.
http://www.best-car-buying-tips.com
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