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Four Reasons You Should Buy a Used Car

Posted August 27, 2012 by lawrenceponte to Finance 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.


Transportation is one of the most fundamental needs of modern people, and automobiles are not only the most convenient option, they're the only option for most. Unfortunately, new cars are extremely expensive, and it doesn't matter how necessary something is when someone can't afford it. However, there are multiple ways to get around the high price tag of new vehicles, and savvy buyers can end up getting a better deal than those who insist on purchasing the latest-and-greatest.

1. Used Cars Have Already Depreciated

Contrary to popular wisdom, automobiles aren't assets. Most cars lose 20 percent of their value the moment someone drives them off the lot, and while there are exceptions, only the wealthiest people can actually afford them. A car that's purchased for $3,000 may actually be able to be sold for the same amount if it's kept in good condition, and even if the buyer ends up selling a used car for less than what he paid for it, he still ends up paying just a few thousand dollars for something that will do what he needs it to do. Practicality beats high prices every time.

2. Used Cars Last Just as Long

The primary draw of a new car is that it will last for a really long time. What most car dealerships fail to mention is that the same is true of used vehicles. Not every used car will last for a decade or more, but a vehicle that's purchased in excellent condition can easily match the best vehicles from the current year. Someone who keeps his cars for seven to ten years or more can definitely get a much better deal by going used.

3. Used Cars Provide a Much Bigger Marketplace

Car dealerships can only lower their prices to a certain point. They have to give sellers a fair profit margin, and they have to look out for their bottom line; they simply can't provide the best deals. Private sellers are a completely different story. Oftentimes people just want to get rid of their vehicles as fast as possible, and a lot of people will give a hefty discount to someone who can pay in cash. It's a buyer's market.

4. Used Cars Come With Fewer Taxes and Fees

New cars have the unfortunate privilege of carrying a hefty sales tax; something with a sticker price of $30,000 may end up costing thousands more, and that's before other fees and additions are factored in. Buying a used vehicle is a far simpler process, and not only does it lend itself to lower prices, it leaves less room for headaches.

What's the Catch?

Buyers need to be much more aggressive when it comes to maintenance than they'd need to be with new vehicles. Aside from routine tasks like getting oil changes, new cars usually don't require much in the way of repairs for the first few years of ownership. Used cars tend to be fairly reliable as long as the buyer knows what to look for, but regardless, it takes a skilled mechanic to keep a used vehicle running in tip-top shape for however long it stays on the road. Someone who is willing to purchase a used vehicle should familiarize himself with the mechanics in his area so he can stay on top of things through the services of someone he trusts.

While an increased emphasis on proper maintenance may seem like a negative at first, it can serve to educate the owner about various aspects of how his car works. Those who own used cars almost inevitably gain knowledge that people who only buy new never acquire, and there's an incredible amount of value in that. Buying used may not be the best option for everyone, but it's a compelling offer for anyone who wants to make the most of limited funds.

About lawrenceponte: Gene Osborne writes for auto blogs where you can read about auto repair in San Antonio information and estimates.  

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