Many consumers who buy a new car soon discover they are in over their heads. Besides the monthly loan payment, a comprehensive insurance policy is required as well as the cost of licensing, registration, and basic maintenance. If a buyer takes out an extended or enhanced warranty, this costs even more. A second-hand car can be a viable option that won’t break the bank. Consider the benefits of buying second-hand cars.
A new car depreciates almost as soon as the buyer drives away. Once it leaves the showroom, it is instantly worth less money and there are few exceptions to this general rule. A second-hand car is typically worth what a buyer pays for it and depreciates more slowly than a new one. If buyers discover a new car payment is more than they can afford, it can cost hundreds or thousands of dollars to trade the car in. It makes more sense to purchase a used car that is within a buyer’s budget. Plus, the car will have ongoing resale value as long as the buyer properly maintains it.
Certified Used Cars are Amazing
It can be unpredictable to buy a used car from a local seller or someone from an Internet classified ad. In many instances, you wind up buying the seller’s headaches and it the cost of repairs can add up quickly. These purchases are “as is” and the new buyers become responsible for all the problems. Savvy buyers shop around for certified used cars from reputable used car dealers. These cars and trucks often look and feel like new vehicles. They typically come with an impressive warranty and can provide years of good service for far less than buying a new car. Plus, unlike a private seller, the car dealership has a business reputation to protect.
Lower Monthly Payment and Cheaper Insurance
Because second-hand cars are less expensive, the monthly financing payment is lower. While the financing company usually requires buyers to maintain comprehensive insurance coverage, as it often less expensive than paying for insurance on a new vehicle. If the used car is affordable, the buyer might be able to pay cash for it. This means no monthly payments or interest, which adds up to even greater savings.
Quality second-hand cars are a wise choice for people who are trying to save money. Take time to shop around and verify vehicle prices on your own by using a source such as the Kelley Blue Book. With some careful comparison shopping and smart negotiation, buyers can score an excellent second-hand car for a fraction of the price of buying a new one.