A used car is an excellent option for buyers with limited budgets, unlimited budgets and everything in between. The big reason why used vehicles are financially appealing is depreciation of new cars. Unfortunately, new cars carry a hefty price tag that all but disappears as soon as it’s off the lot. Also, after the first few years of ownership, the value of that new car declines considerably. If you applied those depreciating principles to buying a house or condo, you’d never make that choice.
Buying a used car has its risks. While the reward of buying used is saving money on the purchase, the risk of buying used is getting stuck with a vehicle that costs a fortune to own. This could be due to higher maintenance costs or higher auto insurance rates.
Getting tricked on an auto deal is a cultural cliché, but the fact is, the vast majority of car dealers are reputable. Most dealerships will show you a vehicle’s service record, certifications and other documentation to support the price and reliability of the vehicle you’re thinking of purchasing. Regardless, you’ve got to do your research and ask the right questions to be sure in what you’re buying and negotiating the right price. Consider asking the following questions:
- How many car owners?
- When was the car last services?
- What is the damage of the car?
- Does the dealer offer in house financing?
- Can I take a test drive of the vehicle?
Check out the infographic below for questions to ask when purchasing. If you’re purchasing from a private party, especially a stranger, you have to be even more careful. You always have legal options if you purchase a vehicle that’s been misrepresented, but you certainly don’t want to chance yourself to the expenses that occur when all you wanted was a nice used car. Pre-owned luxury vehicles are also an option and widely sold, because even people that can afford a new car like to avoid five-figure depreciation.
To learn more tips about purchasing a used car consult the infographic below.
Infographic created by JDBNOW