ALT-1 Pros and Cons of Buying a used Car
At this writing, the average price of a new car is fast approaching $25,000. Depending on how old you are, it’s quite possible that your parents paid less for their house! When taking such a fact into consideration, it becomes easy to see why used cars outsell new cars, and by a considerable margin.
Just as with any used item you may spot in a classified ad, a used car will cost less than that brand new 2011 model sitting in the dealership’s showroom or on the lot. Obviously, that lower cost will appeal to consumers in the market for a car. But since the vast majority of us prefer to purchase used cars over new ones, it stands to reason that there must be several other advantages to making this choice. So let’s look at a few:
Depreciation
Put simply, this is why used cars cost considerably less than their new counterparts. Redundant as this may sound, every used car was once a new car, and thus every new car will become a used car. In the case of automobiles, depreciation is the buyer’s friend. As soon as that brand new car is driven off that dealership’s lot, this process of losing monetary value is set into motion. What results is a huge savings potential for the conscientious car shopper. In nearly every incidence, most cars will take their biggest hit in value during the first year or two of their useful life. In fact, it’s not uncommon for a car one model year old to depreciate by 20%. Thus, a 2010 version of that new $25,000 car may have a few thousand miles showing on the odometer, but it could cost $5000 less as well! While there’s nothing like driving away in a brand new car with zero miles and that “new car” smell, it often makes far more financial sense to buy a car that is one to three years old.
Preference
Some people may have their sights set on a specific model with a specific body style or engine. Perhaps the newest model has had a facelift and no longer appeals to the person who really liked the styling of the earlier versions. Likewise, an engine option may have been dropped for the latest year and the person prefers that discontinued option. And finally, some individuals may want to buy a make of car that is no longer in production, such as a Saturn or Pontiac because he or she simply likes them!
Lower repair costs
As new cars enjoy the advancement of modern-day technology, these newfangled gadgets and gizmos can carry a high price tag. For example, someone with foresight may realize that one day, long past the warranty period has expired, that complex navigation system will fail and cost a couple of thousand dollars to fix. Since a cell phone and a Road Atlas from Wal-Mart will perform the same functions at a fraction of the price, such a person may choose a used car manufactured before such additions became standard equipment. In fact, many parts on the latest cars are likely to result in higher replacement costs over those of older models. Older cars also employed simpler mechanics; such as hand-crank windows, manual seat adjusters, replacement light bulbs available at Wal-Mart, and keys that could actually be duplicated at your local hardware store!
Now that the key advantages to purchasing used cars has been discussed, it’s important to note a few disadvantages as well:
Unknown or uncertain history
Unless one has the ability to perform a Vulcan mind-meld, there is really no way to know exactly how that used car was maintained or even driven before it exchanged hands. Documented repair and maintenance records can certainly be revealing, but it is quite rare for a new owner to have access to everything that was ever done to the car. Did the previous owner drive 110 mph everywhere? Was the oil changed in a timely manner? Are there any issues that the salesperson doesn’t want the buyer to know about?
Reduced life expectancy
The car is used. Therefore, a portion of its useful life has passed. Regardless of how well one takes care of a car, and barring a complete restoration, a day will arrive when it ceases to function. Thus, in a purely linear sense, that day in theory will arrive sooner for those who buy used cars as opposed to new cars. For those who keep cars until they can no longer be driven, this is a factor to consider. Moreover, since used cars have higher mileage and an older age of manufacture date, there will be less, if any, factory warranty left. As a result, out-of-pocket repair costs will occur sooner . Likewise, so will the replacement costs of wear-and-tear items not covered.
There are pros and cons to practically every choice we make in life. When it comes to purchasing used cars, they have been listed above. Ultimately; however, the decision must be yours.
