Pros and Cons of Buying a Used Car
Choosing the right car is hard enough, but there’s also a huge debate over whether it’s better to get a new or used car. New cars are more alluring and presumably have a longer life ahead of them, however, a new car isn’t the best option for every buyer.
Even though used cars might not have all the bells and whistles and low mileage the way new ones do, some people buy used every time they’re in the market for another vehicle. Continue reading to learn some of the pros and cons of buying a used vehicle.
Used cars come with lower car insurance rates.
Federal law dictates that you have to have auto insurance to operate a motor vehicle. Usually, you have to purchase full coverage insurance when you buy a new car.
A full-coverage insurance policy covers any property damage and bodily injury you cause to another driver in a car crash as well as your vehicle and its occupants. In short, full-coverage insurance is what its name suggests. There are different full-coverage options, but full-coverage insurance policies cover you whether or not you’re at fault.
When you buy a used car, you can usually get away with getting liability car insurance. Liability insurance policies allow you to get minimum coverage that offers collision coverage to the other driver if you’re at fault in an auto accident. Liability insurance also covers medical costs and lost wages due to bodily injury, but liability insurance policies don’t cover your bodily injuries or car damage if you’re the fault driver.
Liability insurance policies are a cheaper option than full coverage. Even full coverage insurance policies are cheaper for used cars than for new ones because used cars are worth less than new ones. As a result, buying used is a greater way to get a lower car insurance rate.
Used cars have better resale value.
One of the worst things about buying a new vehicle is that its value depreciates quickly. Most new vehicles will have lost as much as half their resale value. That means that after three years, your vehicle will only be worth what you’ve already paid for it, and you’ll probably only paid for half of the vehicle in that time.
Used vehicles depreciate, but they depreciate at a much slower rate. If you buy a certified pre-owned vehicle that’s three model years old, in another three years, it more than likely will have retained at least 2/3 of its value at the time you purchased it. That means you might even be able to make a profit on the sale of a used vehicle if you have a 6-year auto loan.
Used cars don’t have the latest safety features.
You already know that when you buy a used car, you’ll probably miss out on some of the newest and latest bells and whistles. However, one thing that many people don’t consider is that you’ll also be missing out on many of the latest safety features.
Over time, carmakers have learned more about what happens to cars and the people in them in car crashes and worked hard to make automobiles as safe as possible. Many new vehicles have features like lane assist and vehicle detection that help drivers to avoid collisions. They’ve also improved car designs to be able to sustain impact and keep vehicle occupants as safe as possible.
It’s harder to be certain about the reliability and durability of used cars.
Few things are more frustrating than having to deal with constant car trouble. When you’re spending as much on repairs as you spend on monthly car payments, your car is more of a liability than a help.
New vehicles have the advantage of being under warranty and being fresh out of the factory. However, when you buy a used car, it can be difficult to tell whether you’re getting a great deal or someone else’s headache.
Whenever you purchase a used vehicle, it’s wise to have a mechanic inspect the car before you buy it. The inspection will cost between $150 and $200, but it’s better to pay for a car inspection than a lifetime of repairs and buyer’s remorse.