Used vehicles are often the best values you'll find in the automotive market, but many consumers are wary of the risks involved. While it is true that there are greater risks than purchasing a new jaguar, a smart shopper can experience a successful used car shopping experience, and in return get a great value on their next vehicle. This is especially so for late-model ones. Not only is the price lower than a comparable new car, but ownership expenses such as collision insurance and taxes are lower, and a used vehicle has already taken its biggest hit in depreciation. In addition, buying used is often a way to get a better-equipped vehicle than you'd be able to afford new.
Used Car Safety
Some consumers may fear that buying a used car means you won't have the latest safety features. While this is true from vehicles more than five years ago, vehicles from within the last few years will be fairly up to date. Newer features such as electronic stability control (ESC), head-protecting curtain air bags, LATCH child-seat restraints, and advanced frontal air-bag systems are harder to find on older vehicles. But a vehicle with more common safety features such as antilock brakes, traction control, and side air bags will be more affordable on a used car than on a similarly equipped new car.
Depreciation Value
One of the greatest benefits of a used car is the depreciation value. A major disadvantage to buying a new car is the rapid depreciation it undergoes in the first few years. Models typically lose about 45 percent of their value in the first three years, compared with 25 percent over the next three. But this varies greatly among models. Several factors determine depreciation, including the model's popularity, perceived quality, supply, and whether or not the vehicle is of the current design. The average depreciation on a $27,500 vehicle leaves little more than $15,000 after three years, a huge hit in residual value.
Save on Insurance
Used cars are less to insure in general. You'll typically pay less to insure a used vehicle than a new version of the same vehicle. This is just another way to save when you purchase used instead of new.
Reliability Factor
One thing that has made used cars more appealing is their improved reliability. This factor used to be a huge issue in the used car market, but today used cars are more reliable than ever. Rust and exhaust-system problems, once common, are now no longer a major concern. As a result, buying a late-model used vehicle is not as much of a risk as it used to be. When properly maintained, today's vehicles should easily go well past 100,000 miles, and many could reach 200,000 miles without a major breakdown.
Warranties and repairs
Although used cars are more reliable than ever, maintenance and repair costs are important considerations. In the first two or three years of a car's life, it has fewer problems and is typically covered by a comprehensive warranty. A used car, on the other hand, is either close to coming off warranty or already off it. This means that owners will have to pay for repairs out of pocket, but most costs will probably go to replace parts like tires, brakes, or a battery-high-wear items that often aren't covered by a warranty anyway. By giving the car a careful inspection yourself and having the vehicle thoroughly inspected by a qualified mechanic, you can usually get a good idea of the car's value. You may also want to ask your dealer about a used car warranty as these are becoming more and more available.