| Each year, out of all the vehicles bought in the | | | | 2) PROS - On the other side, buying a used car |
| U.S., 41 million are used cars compared to only 16 | | | | could benefit the buyer in several ways: |
| million new car purchases. | | | | * The original owner of the car received the |
| Since purchasing a car is the next financial | | | | depreciation hit. The market value of the new car |
| investment made by US citizen other than | | | | decreases from year to year. An average 30% |
| housing, it is important to determine if buying a | | | | of its value within three years from the time it |
| used car is worth your money. | | | | was bought, so buying their car would save you a |
| 1) CONS - Here is a list of the disadvantages of | | | | lot of money. |
| used-car buying: | | | | * Unlike purchasing a new vehicle with high |
| * The options of cars are limited, so the search | | | | insurance fees, you will receive a lower cost of |
| for the right vehicle could be lengthy. | | | | insurance if you choose to buy second-hand cars. |
| * The buyers have no idea if the car was | | | | * Although buying new and used cars both |
| treated. Used cars usually have worn consumables | | | | provide loans, lease, or money-saving the |
| such as hoses, tires, shocks, filters, fans and | | | | majority of dealers who sell used cars often have |
| clutch. | | | | shorter loan terms. |
| * Although used car dealers provide a warranty, it | | | | * If your investment is decided based on |
| is only limited to a couple of months unlike | | | | appearance and gas mileage, choosing a used car |
| purchasing a new car with full warranty. Certain | | | | would guarantee the value and reliability it has |
| maintenance on your purchased second-hand car | | | | provided over the years. |
| could be more expensive. | | | | * A used car would provide your dollar more |
| * Purchasing a second-hand vehicle would offer | | | | flexibility. Compared from buying a new car that |
| you a lower trade-in value. | | | | would eat all your finances, buying a second-hand |
| * The main disadvantage of purchasing old cars is | | | | car would allow you to purchase other |
| that it has an unknown quantity. Whether the | | | | accessories such as air conditioning that would |
| dealer has worked the vehicle to make it | | | | cost approximately US$200 to $900 extra. |
| attractive for the test drive, the buyers are still | | | | Buying your used car could waste your money if |
| unaware of the repair bills, economical issues, and | | | | you fail to do your research, compare dealerships, |
| its reliable transportation. | | | | and be aware of the car's market value. Be a |
| * It is difficult to negotiate fair financing terms on | | | | wise used-car buyer. |
| an older vehicle. | | | | |