Reliable used cars can be a much better deal than buying new. Used cars are cheaper and you don’t lose as much in terms of depreciation with a used car. That’s why many people choose to buy used rather than new. There are many advantages to buying a reliable used car, but there also are disadvantages as well.
One of the big advantages of buying a used car is the price. Affordable used cars are much cheaper than new cars, largely because new cars depreciate quickly. A new car can depreciate 25%-30% in its first year of ownership. That means you could get a one-year-old car that cost $30,000 new for as little as $21,000.
Another advantage with buying pre-owned cars is the ability to get cars loaded with options. When you are trying to buy a new car with leather seats, a sunroof and the latest gadgets, it can add thousands to the base price. Used car dealerships often offer cars that are loaded with these types of amenities, allowing you to get them for much less.
A further advantage to buying used is that used car dealers typically have more profit built into their prices, so there is more room to negotiate, meaning you may be able to get an even better deal than on a new car.
There are, of course, many disadvantages to buying a used car. Even reliable used cars can have problems, and you have no way of knowing how well the previous owner treated the car. You also don’t know if the dealer is telling the truth about the car and its condition. If you are buying a newer used car, you may get one with some of the warranty still intact, and some used car dealers may offer short warranties on newer cars. However, you won’t have the kind of protection that a new car warranty offers.
Another disadvantage with reliable used vehicles is that you usually don’t get as good of financing terms as you do with new cars. Interest rates are typically higher on loans for used cars and terms are generally shorter. It also can be more difficult to qualify for such a loan.
Insuring reliable used cars can often be a mixed bag. While you might get a premium break because of the lower value of the used car, older cars may not have safety features that insurers give discounts for these days.
There are many pros and cons to buying a used car. You have to weigh all of those and figure out what makes the most sense for your situation.