Buying a car is a really stressful, but exciting experience – the first decision has to be whether you will buy a new car or a used one. Used, pre-owned or second-hand are all terms for the “not new” car market, but no matter what your car is called, there are some really strong arguments for sinking your hard earned dollars into a “not new” automobile, and here we'll go through some of them. Money, Money, Money!
Drive a car off the dealer's lot and it depreciates straight away! It makes no difference if it is new or old, they all lose value this way. The huge difference between buying a new or used car is the price you pay and the amount of money you lose with depreciation.Drive a new car off the lot and you typically lose $2,000 immediately – drive a used car off the lot and depending on the price you pay, you'll lose a lot less! You will also lose a lot less money over time with depreciation on your used car because the first year of a car's life will account for 25%-33% of the loss in value – wait until a car is 2 years old and you will see a 50% and more reduction in the value of the vehicle.
More Bang for Your Buck!
Related to how much money you have invested in your automobile is how much value you get for that money. Buying a new car is expensive compared to buying a similar model which is a year or two older. Optional extras and accessories which do not come as standard, are very profitable items for car dealers and manufacturers which means buyers pay a lot of money to have them in practice. They don't contribute a great deal to the value of a car though they may make it easier to sell – if you are in the market for a used car, it will be much cheaper for you to buy a higher specification vehicle than a new one with the same extra toys.
The bottom line is with a used car, you are going to get a lot more car than you will be able to comfortably afford with a new model.
Avoid a Lemon and Find a Proven Performer
Buying a new car means buying untested technology or performance; even with models which have been in production for a lengthy period of time, no two models are ever the same. Even buying a car which has been made on a different day of the week can dramatically improve the likelihood of problems down the road – do you really want to buy a car which was hurriedly put together with five minutes to go at the end of the Friday day shift?
Buying a used car means you will firstly, know what that models performance and reliability history and reputation are. Some cars are known for problems and equally, for their reliability which is easy to research. The second reason for buying a used car is that you can see how well it has been cared for by previous owners – simply look at the service history, and in any even, the vehicle may still come with manufacturer or dealer warranties at no cost to you.
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