Nowadays, almost anyone can buy a new car. Manufacturers are cutting down their expenses to provide us with inexpensive yet quality vehicles. Dealerships are coming up with “Zero-Financing” and “Bad credit? No problem” programs to give more people an opportunity to buy a car. Although buying a new car might sound appealing, it’s not always the best investment.
Used car market is huge. In fact it’s twice as big as new car market with 2010 annual sales of 36.7 million in the USA. It’s higher than in 2009 and expected to grow for 2011.
Used Car Checklist Insight: Pros and Cons Of Used Car Buying
The good news is the fact that an average depreciation for used car goes down as it gets a year older. For new cars an average depreciation is 20% per year for the first 3-4 years, so after that time about half of the car value is gone for good. After first 3-4 years however, the depreciation of cars slows down which makes it a perfect time to buy that car. Of course since it’s been driven by a stranger the car might have some problems, but if inspection is done correctly (tips and used car checklist found here) that shouldn’t be an issue at all. It’s a fact that many people treat their cars as family, so you might end up with a used car in “brand new” shape for half the price.
Now let’s talk about some downsides of buying a used car. As cars get driven, the parts get worn out, so it’s likely that you will need to do maintenance sooner. Of course it depends on how the car has been driven, if it has been driven “hard”, the parts would be more worn out then if the car has been driven “normally”. The other downside is the warranty. After 5 years standard manufacturers’ warranties are done, so money for future repairs would come out of your pocket.
It’s surely a personal decision whether to buy a used or a new car. Just keep in mind that you can get a car of the higher class if you buy it used. Don’t get turned off by the word “used”, with used car checklist and tips found here, you will be able to find a perfect used car.
Good article. Buying a used car is just as much if not more of a decision as buying a brand new vehicle… Currently the used car prices are just under that of what a new car is selling at which has been hurting the market a bit… But smart used car buyers know where to look and the also know to have their used car inspected prior to finalizing the purchase.
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