May 23, 2024

Six Pros and Cons of Buying a Used Car

Used car lots

While United States consumers purchase an estimated 16 million cars each year, over three used cars are sold for every new car sold. 2012 witnessed a spike in used car sales as estimates pointed to over 40 million used cars sold. If you are in the market for a new vehicle, here are some important pros and cons of buying a used car to keep in mind when you visit the car dealership.

1. Pro: Great Value on Newer Models

Just because you’re buying a used car doesn’t mean it has to be ancient technology. The vast majority of used car dealerships offer newer models from the past few years that may be in near perfect condition. The only obvious difference between a newer used car and a brand new car may be a serious price discrepancy in favor of the used car.

2. Con: Not Customized

One of the fun and exciting draws to purchasing a brand new car is choosing features such as the interior color and material or adding tint to windows. Unfortunately, used cars aren’t necessarily made to satisfy your specific tastes. You might have to spend more time looking for a used car that is perfect for you.

3. Pro: Easy Financing Options

Often, used car dealerships offer easy financing options such as buy here pay here financing that help customers out even if they do not have an immaculate credit history. You are able to bypass the premium fees charged to new car buyers and look into easy financing arrangements that you will be able to keep up with.

4. Con: Uncertain History

Even with access to car history reports, used cars may have been in accidents or had issues that you are unaware of because they were not reported to the DMV. Usually this is not a huge problem because most dealerships subject used cars to a myriad of inspections. However, there is always the possibility that the car has had problems in the past that could impact its future.

5. Pro: Less Depreciation

While most new cars depreciate between 20% and 30% within the first couple years of ownership, some new cars can lose as much as 40% of their value… in the first year alone! Once a car is past the first few years, its depreciation rate slows down to under 15%. You will recoup more of your investment when selling a used car versus a car that you bought used.

6. Con: Older Technology

If you are a sucker for the latest gizmos and gadgets, it may seem like a lot to sacrifice exciting new technological features of new cars. New technology continues to make cars safer, improve the multimedia experience, include better navigation systems, increase fuel efficiency and reduce less harmful emissions into the atmosphere.

If you are stuck deciding between the exhilaration of purchasing a brand new car or the more practical approach of buying a used car, there are many aspects to consider. The right car for you depends on your unique situation and values, but hopefully considering some of these aspects can help you make a more informed decision.

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