Reasons to buy a used car

So the question that weighs on everyone's mind when buying a car is whether it is better to buy new or used car. Many in the industry are advocates of buying a used car, but why? We try to explain a few good reasons that we found is better to buy a used car instead of a new car.

Depreciation: The first and most obvious reason to buy a used car versus a brand new shiny new one is the value. In essence, when buying a new car you are losing money because of the concept of depreciation. It is no secret that a car depreciates the most in the first year, and then continues to decrease in value over the next five years before leveling off. Therefore, by purchasing a car that is more than few years old - after it has depreciated - you are not losing as much money and rather actually paying the price the car is worth.

Lemons: The term "lemon" is used when one buys a new car, thereby expecting a perfectly sound, working vehicle and gets less than expected for whatever reason. All man-made products have the potential of being flawed, especially on new items that have never been tested before. By buying a used car you avoid experiencing many of the initial "defects" if you will. In other words, anything that could go wrong, such as lemons or kinks in a new vehicle would have been worked out by the time you purchase it when buying used. Whereas, if you buy new there is always that possibility of getting a dud because it has never been driven.

Free Upgrades: First time owners typically add expensive upgrades to the vehicle as a way to personalize it and when you buy a used car it already comes with the upgrades, such as high end rims or an enhanced sound system or even tinted windows. If you buy new then you have to pay the additional cost to install whatever upgrades you are interested in having in a vehicle. However, when you buy a used car, you get them included without the extra out of pocket cost to you.

Cost & Ownership: Vehicles are not cheap and the obvious perk to buying a used car is that it will be significantly less expensive than a new car because of its depreciation value factor. When buying a new car you are looking to either make a comparable down payment and then finance the remaining thousands of dollars, or spend a large amount of money up front for your vehicle.

Most of us looking to make a large purchase such as a house or a car don't plan on spending the full price all at once in order to obtain the desired item - we go into the purchase knowing that we will not "own" a new car, but rather "borrow" and make monthly payments on it for at least a few years. So the value and benefit of buying a used car is that you will be the sole owner because you will be making the payment in full upon the day of purchase.

Deals, Deals, Deals: When buying a used car you are typically buying from a private owner or a used car dealer and therefore there is a better chance they may be offering a deal on the used car that would make it less expensive for you. Perhaps the seller dealer is just looking to get rid of the vehicle for quick cash or reduce their inventory and will accept any price you offer.

The difference as opposed to new cars, which can only be purchased at a dealership and can only be reduced down so far, is that you have the opportunity to find better deals on cars that may be worth more than you have to pay.

Negotiation Power: A used car may have imperfections, such as dings or scratches on the interior or exterior, which have nothing to do with how the car runs, but does add a "negative" to its sale value. This would allow you the power to negotiate the price with the seller, whereas new cars are meant to be flawless. Check Used Cars Price Negotiation.