Advantages and Disadvantages of Buying Used Cars

Advantage of Buying a Used Car:

1- A used car can cost you less than a new car. This is because the market value of a used car usually is 30 per cent less than the new car in just three years. This reduction is price is, however, calculated on the depreciation value.

2 – While you need to pay for high insurance fees if you buy a new car, the insurance fees are generally significantly less for used cards. Hence, you can save a lot of money.

3- If your appearance and mileage are your priorities for buying a car, then used cars score over new cars as they have proven performance records to rely on. Mileage for a used car, for example, can be consistent for the next couple of years.

4- A used car would help you save money substantially in terms of gradual investments. Usually, a new car would require you to spend consistently on several aspects. However, a used car won’t need any investment which helps you to spend money on car accessories such as Air Conditioning.

Disadvantage of Buying a Used Car:

1-For a starter, it is difficult to negotiate a fair finance terms on a used car. Usually, many people end up paying more than the used car deserves.

2- It is a risk to buy a used car as you have no idea how the car has been treated by its pervious owners. Some important consumables such as clutch, tires, filters, hoses, and fans may have been worn off as a result of maltreatment of the car.

3- You would get low trade-in value with a used car where new cars have relatively higher trade-in values.

4- A shorter warranty is one of the potential disadvantages with used cars. Unlike new cars which are covered by insurance and protected with long-term warranties, used cars are barely left with warranty only a couple of months. This often leads to high maintenance cost.