Advantages and Disadvantages of Buying a Used Car

The used car market has garnered popularity since quite some time now owing to the rise in prices of used cars, fuel, car loans, additional interests and so on. Consumers nowadays, are looking for more standardised pricing of cars. As a result, the used car market has turned out to be quite appealing for car buyers.

Before buying a used car, it is crucial to conduct a thorough research and follow the right steps to ensure that the car does not end up adding to your expenses. You should get the car checked by a mechanic to ensure that the engines and other components are functioning correctly. Additionally, buying a car more than a year old isn’t wise since depreciation factors in to reduce the value of the car when you plan on selling it.

Buying a used car saves a lot of money. That being said, there are certain disadvantages of investing in a used car. Before making a purchase, it is important to be aware of the pros and cons of buying a used car. Let’s take a look at some of these here.

Advantages of Buying a Used Car

There are various advantages associated with buying a used car. Here are a few of those.

1. Cost Savings

As soon as a new car is driven off the lot, it starts losing value. Therefore, it is no news that the cost of a used car is less than that of a new car. Therefore, buying a used car makes it possible for you to own a luxury car at half the price of a brand new car. This does away with the budget problem considerably.

2.  Reduced Depreciation

A new car depreciates at a greater rate than that of an old car. In fact, some new cars may lose as much as 40% of their original value in the first year. However, this is not the case with a used car. Therefore, this is where you can gain with a used car.

3.  Rigorous Inspections

Various manufacturers offer certification programs for their used cars. These programs are conducted to ensure that the cars are in proper conditions. The vehicles selected for these certification programs undergo a rigorous inspection. Additionally, the certified, pre-owned cars are required to meet high standards of detailing, appearance etc. Automakers offer certain incentives along with the certification programs. These include extended warranty, roadside assistance and so on.

Disadvantages of Buying a Used Car

While buying a used car may seem to be an appealing option, there are certain downsides to this as well. Let’s take a look at these here.

1.  Limited Choice

One of the primary disadvantages of buying a used car is that you are less likely to have many options to choose from. Your choice is limited to the ones available at the dealership and you have to take your pick from among them.

2.  Increased Repair Costs

Even though the dealership repairs the car to look like a brand new one, you are still unaware of the repairing bills, the economical issues associated with it, the reliability and so on. Additionally, you may have to pay a higher interest rate for financing the car. Unlike used cars, certain new cars come with a financing rate as low as 0%. Therefore, getting the car checked by a mechanic helps in making a better decision.

3.  No Warranty Coverage

Additionally, you may not be provided with a warranty coverage for the damage to your car. As a result, you may be required to pay extra for the repair costs. This can be a major problem for car owners since it can be difficult to identify what is wrong with the car and what can go wrong with it at a later stage.

Before making a purchasing decision, it is important to ask for previous reports of the car. This will make you aware of any damage that the car has undergone.

Investing the Money Saved

Buying a used car leads to cost savings. The money you save can be invested in private number plates. You can buy cheapest private number plates to make your car look brand new. Additionally, you can also use the money saved to buy an extended warranty for the car.

It is wise to consider these pros and cons and analyse the market condition before buying a used car.