There are many benefits of buying used cars. One of the benefits is that used cars are typically cheaper than new cars. Another benefit is that you can save money on insurance by buying a vehicle that has already been insured for at least one year.
While there are benefits to buying used cars, it’s also important to keep in mind some potential drawbacks. For example, your car may not last as long when you buy it.
Benefits of buying used cars
One common benefit is that used cars are typically cheaper than new cars. If you consider the benefits of buying a pre-owned vehicle, price should definitely be on your list. You can probably pick up a great second-hand car for half the price of a new version.
Another benefit is that you can save money on insurance by buying a vehicle that has already been insured for at least one year. Many people will take out an insurance policy when they first purchase their used car, but switching to comprehensive or third-party fire and theft cover could mean substantial savings every month.
1. THEY COST LESS
You already know this. Used cars are exponentially more affordable than buying a new vehicle. So if you’re looking to save a few thousand, search your preferred model for a few years back.
2. THEY’VE ALREADY BEEN DEPRECIATED
If you landed a deal on a car that was previously owned, it means someone else already took the depreciation hit for you. As we know, new cars depreciate quickly and heavily in the first few years of ownership, dropping 60% or more off its value in some cases.
If the car you bought cost $5,000 but was previously owned for a year or two, it wouldn’t have taken much of a hit at all. That means more savings for you!
3. THEY’RE LESS RISKY
Insurance companies are beginning to realize that used cars are less of a liability than new ones. As such, most companies will offer lower premiums for used cars with fewer miles on them. That’s not to say you can buy an old clunker and get away with low insurance costs, but there is certainly some truth in the idea that buying second hand can save you money.
4. THEY’RE USED
That means you can take them out for a drive to the lake, park them in the garage outside your house, or cruise around town without having to worry about losing thousands of dollars. Obviously, if they break down after only two days of ownership there is no advantage whatsoever, but otherwise enjoy!
5. THEY’RE MORE AFFORDABLE TO MAINTAIN
As already mentioned, used cars have fewer miles on them and require less upkeep than their new counterparts. Also, the high mileage is usually the culprit behind a car breaking down (or at least leading to more issues). When you buy a used car there is no need to worry that the engine could give out after only a year or two of driving because that rarely happens.
6. THEY’RE MORE ATTRACTIVE TO SELLERS
Think about it: you want to sell your car, so you list it online for sale and wait for buyers to come flocking. If you check out some listings, you might notice that the buyers tend to favor used cars over new ones.
Why? Because they know that once they drive a car for a year or two and sell it, they will be able to get more money than if they had purchased it in the first place.
7. AVOID HIDDEN FEES
The benefits of buying used cars don’t stop at the actual price tag. People may try to get you with hidden fees such as delivery costs, registration, and documentation fees. Don’t fall for it! You will be better off if you buy used cars from a trustworthy dealer because they should only charge the car’s price and then taxes.
WHAT ARE THE DOWNSIDES OF BUYING USED CARS?
1. THEY HAVE HIGH MILEAGE
While high mileage is not a problem in itself, it can lead to issues such as electrical problems and engine damage (among others). If the previous owner was quite lax with car maintenance, you could be in trouble.
2. THEIR PRICE IS NOT VISIBLE
It might not help you avoid hidden price points, so make sure to do your research and ask all the necessary questions before making a purchase!
3. THEY ARE SENSIBLY MORE UNSAFE
The big problem with buying used cars is that they can be easily unsafe. If the car was driven by a smoker, for example, they left their cigarette butts all over the floor and now you could be at risk of fire (or some other problem).
Another possible issue is skid marks: sometimes people buy used cars and try to drive them as if they were new. This can lead to them skidding on wet or snowy roads and totaling their vehicle.
4. THEY ARE HARDER TO FIND
It takes more time to find a used car than it does to buy a new one, so make sure you have the necessary time set aside! Also, if you are buying used cars from some distant location, figure out the necessary budget for extra travel expenses.
5. IT CAN BE HARD TO GET A GOOD DEAL
Lastly, don’t think that you are going to get a great deal just because you are buying used! Some people are willing to sell their cars for even less than they originally paid for them, but others will price them at the same rate as what they would get if they had bought it new.
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