If you’re in the market for a new vehicle, chances are you’re like most people and want to find something that’s reliable and affordable. When it comes to making the final purchase, used cars can have a great advantage over vehicles that have just rolled onto the showroom floor. Whether you’re looking for a car or truck for yourself, a new driver in your family, or another loved one, consider how a pre-owned vehicle can benefit you in the short and long-term.
One major advantage to choosing from a selection of used cars is lower pricing. Pre-owned vehicles are less expensive than their new counterparts. Most consumers are aware of the fact that as soon as your new car is purchased and hits the streets, it depreciates in value; this trend continues, dropping as much as 30% over the course of one to two years.
Without taking into perspective the big picture, examine your monthly payments and interest paid over time on a pre-owned vehicle versus a new one. Let’s say you decide to purchase a brand new car for $20,000. At an interest rate of 4-5%, depending on your credit and length of the loan, you’re looking at spending an additional $1000 over the length of the loan. Used cars have already taken that initial hit on depreciation (or a long-term hit depending on how old it is).
Purchasing a new vehicle over a pre-owned car or truck does not automatically guarantee that you will have a more reliable method of transportation. There have been numerous instances of automobile manufacturers having to recall newer models due to faulty brakes or even shoddy air conditioning. The psychological connection between ‘new’ and ‘sturdy’ seems prevalent in our culture. Unfortunately, a poorly built new car is just as likely to break down as a poorly built older one, or a badly maintained one.
One way to overcome any concerns you might have about the history of a pre-owned vehicle is to get a CarFax Report. With this method you can determine accident history, odometer issues, services and repairs, recall information, and even whether or not the car has been used as a rental in the past. Armed with this knowledge, you can be sure you are making a well-informed decision about making a wise purchase.
There’s no need to take out a huge loan to buy a brand new car if you know exactly what you need. Make a list of the features that are most important to you, and outline your available budget and how much cash you have in reserve for a down payment. Visit your local dealer of used cars and talk not only with the sales staff, but also their financial team members to get an idea of what they have available within your price range. Always keep in mind that you, as the consumer, have the right to know what you’re getting into before you sign on the dotted line.
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