Would Buying a Used Car Work for You?

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Today, second hand car market is large and reliable. Many people can own used cars at affordable prices and enjoy driving them for years. This option shouldn’t be ignored easily without considering its merits. There are many reasons why people would go the route of purchasing a used automobile instead of a brand new one.

Why Would People Want to Buy Used Autos?

First of all, they may not have the money and don’t want to (or cannot) borrow. Some people just don’t want to invest too much money on cars. They are happy to take large mortgages to buy homes but they don’t feel the same way with cars. On the contrary, some people don’t care that they blow the down payment for a nice home on a new car. Everyone has priorities.

Secondly, it is a strategy for some people to buy one or two years old solid used car. This strategy allows the person to drive a nice car while someone else suffers most of the value depreciation. A new automobile would lose as much as 30% of its value within the first year. It would in fact lose about 10% the moment you take it out of the showroom. Few automobile brands are built to last for years and a one or two year old car is still the new technology.

Thirdly, they prefer to own a (used) top brand rather than go for an average (new) sedan. Their prices work out about the same. It is no secret that top brand manufacturers build better and safer automobiles. This increases your chances of survival in case of accidents and decreases the injuries. You can get cheap car insurance quotes if you are driving a safer vehicle because of the way they are built and extra safety features. Auto insurers closely monitor safety ratings of cars.

Purchasing Used Autos from Dealerships

Authorized dealers have a few advantages to offer. Going to a dealer works well when you know exactly what you want. They have the largest stocks and they can check other dealers in the network to find what you are looking for. If you have a certain car in mind with all the whistles, bells and right price you need help finding it.

You may be able to get a loan or pay by credit card when you are buying from a reputable dealer. When you buy from the owner you need to pay cash. You may be able to offer your old vehicle as a part exchange as well that saves you time and let you have a clean swap. For example, you just take the old one off your insurance policy and add the new one. However, you can probably buy a similar auto in the open market cheaper and sell your own for a bit more money.

Thirdly, you have two layers of protection with an authorized dealer. First of all, running an authorized dealership requires large investment and people wouldn’t want a bad reputation to go with their business. They would thoroughly check the vehicles they buy to make sure they are not dealing with a problematic one. Secondly, you can talk to the manufacturer directly and complain about the conduct of the authorized dealer.
Normally, you should be able to negotiate with a dealer. If you are not having any luck in your price negotiations ask for extras. They usually are more inclined to offer you extras than reducing price. You can probably get away with full service before delivery and extended warranty.

Buying a Second Hand Automobile from the Owner

There are a few websites and classifieds to look for a used automobile. The information is similar in most publications; pictures, age, mileage, color, features, availability of service history and general condition. Once you have seen a few cars listed on publications like AutoTrader or Craigslist you will have a pretty good idea how much you are expected to spend.

It is crucial to make sure that the vehicle you are buying has a service history. This will confirm that the mileage is correct since it would be recorded at each service interval. It is also confirmation that the vehicle was well looked after and less likely to cause problems. If someone is not providing service records for whatever reason you should suspect that there is something wrong with it. If you still want to buy you should buy it fairly cheap to compensate for the risks you are taking.

You shouldn’t go looking for bargains and salvaged autos if you don’t know what you are doing. They come with a lot of baggage that ordinary motorist wouldn’t want to deal. One of the problems with buying salvaged automobiles is that it is hard to find car insurance and premiums will not be reasonable. Companies charge a bit more for the uncertainty on reliability of these vehicles.

Remember that you can buy a report on any car for a few bucks. So, you should always get its history checked. In addition you can get it checked by a mechanic. They should be able to see if there are accident or flood damage signs. Also, a mechanic should be able to judge the state of the engine by carrying out simple tests and listening to the engine.

Final Words

If you have a good strategy and solid reasons behind your choice you can buy a great car that will not open a big hole in your wallet. Many people would prefer to buy a second hand car outright instead of getting a large loan for a brand new one. Auto loan interest payments are extra costs on top of what you paid for the car.

  

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