Buying a used car has many benefits. Learn about the advantages of buying a used car over new and find out how to buy a used car safely using car comparison shopping tools and online private listings
There are many benefits to buying a used car when compared with purchasing a new car. Not only does buying a used car offer far better value for money, but there is also far less depreciation on value. With a new car the value often drops by 11% the minute you drive it off the lot. With a used car this depreciation has already occurred, so the price and value of a used car is more stable. If you have been thinking about purchasing a car, consider purchasing a used car. Here’s what you need to know to get the best used car for your money.
Used Car V New Car Purchasing
Buying a used car is far easier on the pocket. A used car is often 50% cheaper than a new model and there are often more financing options available. The lower price of a used car means you are able to buy a more luxurious or better model for the same price as a new budget model. In addition, the running costs are far cheaper when it comes to tax and insurance. Additionally, with the improved quality of car construction in recent years, the informed opinion is that many cars in the US will remain trouble free for at least 100, 00 miles.
Despite the obvious advantages of used over new, many people have concerns about buying a used car. This fear stems from the fear of being ripped off by unscrupulous dealers or private sellers. However, there are numerous safeguards in place. If you do your homework beforehand, you can buy a good quality reliable car just as safely as buying a new model.
Certificated Pre Owned (CPO) Vehicles and Warranties
Used cars that come with CPO certification assure buyers they are getting a good deal. A car with CPO certification has been refurbished, inspected, and certified. This service is performed by the manufacturer or other certifying authority, and they verify that it is in good condition. Many car dealerships offer an extended warranty on CPO vehicles and offer special financing deals or other extras.
Buying a CPO certified car from a used car dealership is a fantastic option for buyers as it provides a guarantee. Often the manufacturer’s warranty is extended on a CPO car so your car is covered for any repairs for up to 100, 00 miles. This is a far better warranty than could be obtained by buying a brand new car and is much less expensive too.
Check out the Car Comparison Websites
The car comparison websites are a good place to start your research for your dream car. Here is a listing of the best, and most reputable, comparison sites.
Kelley Blue Book provides useful information on all facets of car buying, including a price guide on used car models across 120 regions in the US. The site is a trusted resource. The company has been in operation since 1926 and today is the go-to price guide for all automotive professionals and buyers. The pricing and information are updated every week, providing an up to the minute overview of the market. This allows you to view local and economic trends.
Kelley Blue Book has thousands of cars for sale listed on the site and you can find everything from a Ferrari to a family run-around. The search engine enables you to filter your results depending on your requirements and geographic location.
Cars.com specializes in cars that are certificated used or are still covered under a manufacturer’s warranty. As well as a great range of cars on the site, you can also find out about the certified pre owned programs offered by the major car manufacturers.
Autotrader has thousands of cars for sale on its site. It offers buying advice for all different models including price comparisons. It also offers guidance on pricing options if you are looking for finance through its financing tool. By adding your credit range and ideal monthly payment, their tool allows you to find the price range of your ideal car. So, for example if you wish to spend no more than $50 per month, the suggested price is $3432 with a down payment of $686 (payable by credit card).
Buying a Used Car from a Private Individual
Whether you buy a car from a private seller, a local online resource such as Craig’s List or take a look at your neighbour’s car with a for-sale sign, it is important to remember that it is risky unless you take precautions. That said some of the best bargains are achieved in this way, so if you do some research ahead of time, it is a great way of buying a new car.
Do your homework before you buy from a private seller, to establish the price range. Many private sellers overprice their vehicles but checking through Kelley Blue Book or Autotrader gives you a more accurate price guide. It gives you some bargaining power, and if your seller does not agree, just walk away.
It also makes sense to have the car checked out by a mechanic before you buy. It is your right to insist on an independent inspection before you hand over any payment. If the inspection reveals mechanical issues, you can ask for a price reduction to cover the repairs. A full independent inspection should only cost around $100, so doing this saves you money in the long run.
Additionally, you are able to run a vehicle inspection report on any vehicle as long as you have the VIN number. The VIN (Vehicle Identification Number) is usually located somewhere on the front dash. This report lets you know if the vehicle has been involved in any accidents and gives you a clear picture of what you are about to purchase.