Do the terms ‘used car’ conjure up images of rickety old piles of junk on wheels? That is a very popular misconception. Contrary to such ideas, there are many great used car deals that you can get for yourself. Admittedly, there is some risk involved. However, if you are really careful and do your homework before buying, you can actually get yourself a very good deal.
A lot of people are actually buying used cars because of the reliable bargains that they are getting from dealerships like a used car dealership st. louis. So, why should you get a used car and not a new one?
Here are some of the arguments:
Used cars are reliable
The used cars industry has become even more reliable than what it used to be earlier on. According to a few surveys on consumer reports over the last few years, it has been found that in the latest survey, the five year old cars have been reported with fewer problems. This is in comparison to the used cars that were looked at in 2007.
Nowadays, the common problems plaguing used car buyers like rust, exhaust systems, engine and transmission problems have all gone down. With proper maintenance, a used car can still give 100,000 miles and more.
Because reliability has gone up, costs associated with repair and maintenance has gone down. However, remember that a car doesn’t show problems in the first few years of its usage. However, when you buy a used car, it is usually after warranty or just about to. This means that as the years pass, you will have to pay for repairs and costly ones at that. Because there will be no more warranty coverage.
The repairs will include parts like tyres, brakes and batteries. However, if you do a savings analysis, you would still save money as opposed to buying a new car. This holds true even if you replace all these parts.
Since you always run a risk, the best thing to do is to get the car checked by a qualified mechanic. This way you will know whether a car is damaged or abused in some way. Remember that even a car which looks reliable can have serious problems. This way you are protected from nasty surprises.
The rate of depreciation
One of the biggest problems of buying a new car is the depreciation. In the first three years, most cars lose around 47 percent of their value. The next three years comes with around 24 percent depreciation.
Of course there are various factors which influence depreciation like:
- Supply of the model
So when you buy a used car from places like a used car dealership st. louis, it has already seen the worst of depreciation.
Rates of interest
While loans for a new car come with a lower interest rate, the difference between a monthly payment for a used car and a new one isn’t that high to begin with. The rates are usually within one to one and half percentage of each other.
Even the insurance premium for a used car is less than that of a new one of the same model.
These are usually the most common arguments which go back and forth when people are trying to debate as to whether they should buy a new car or a used one. Go through these and then you can make your own informed choice.
About the author
Roy Harrison is an automobile enthusiast working for an online non profit media organisation. He has written articles about the automobile industry including used car dealership st. louis for the last six years. When he is free, Roy loves going on long drives with his dog.