Car buying is serious these days. There are more makes,
models, styles, colors, and accessories to choose from now than ever before
and competition between the automakers is fierce. There is also more
comparison information available. Websites such as
MSN
Autos, Edmunds.com,
and Consumer Reports
make researching a variety of autos quick, easy, and painless.
However, with inflated car prices it is making more sense than ever to buy
used instead of new. Not only are used cars much cheaper, they are often in
just as good condition as new and may even still have that new-car-smell.
Some reasons to consider your next car purchase to be used instead of new
include:
Price, Price, Price! - The number one reason for
buying used vs. new: it just makes good financial sense. As I'm sure you've
heard before, the minute that you drive your new car off the lot you've just
depreciated by several hundred to thousands of dollars.
When buying a car a year or two old you not only save thousands of dollars
off of the new car sticker price, but you can also get a quality car with
low miles, little wear-and-tear, and with many good miles left on it at a
fraction of the cost.
Also, for all of us, part of good
financial planning is to become debt free and never having to borrow for
items that depreciate. Since nearly any of us can afford to go out and pay
cash for a brand new car, it is much easier to save for a good used one.
Certified Pre-Owned Programs (CPO) - Many
automakers and dealerships are now offering Certified Pre-Owned cars.
Meaning, that their used cars have gone through a thorough inspection
process to ensure that they are in top-quality condition. You may pay a
little extra for a certified car but usually it is worth the extra expense
to have an expert go over your vehicle.
Beware though,
that not all CPO programs are created equally. Research to see just what
their inspection entails and compare it to other programs. Also, be sure to
check with the Better Business Bureau to see if there have been any
complaints regarding the dealership you are considering shopping.
Extended Factory and After-Market Warrantees Available - Many people
were afraid to buy used cars because they were typically
what-you-see-is-what-you-get with no guarantees that the second you drove it
off of the lot that something might go wrong. However, many car retailers
now offer extended warrantees, either offered by the factory themselves,
especially in conjunction with CPO programs, or through an after-market
agency.
These extended warrantees can be worth their
weight in gold if something goes wrong. Be sure to examine your policy
carefully though, look for loopholes and be sure that most normal items are
covered, including engine and drive train.
Lease
Trade-Ins Offer Low Miles - Many people choose to lease vehicles instead
of purchasing to allow them a better vehicle for less of a monthly payment.
While this does not typically make good financial sense for the lessee, it
allows us, the used car buyer, an opportunity to pick up a quality used car
with low mileage. Since most leases only allow 12,000 - 15,000 miles a year
on vehicles, we are able to purchase a two year-old car with only 24,000 -
30,000 miles on it at a fraction of what the same car would cost new.
As always, use caution when making your purchase. Do your
research carefully not only on the vehicle but on the dealership as well. Ask
friends, family, and co-workers where they have bought their car and if they
are happy with their purchase. Research the car that you are considering on
the internet utilizing websites such as
Kelly Blue Book to ensure
that you are getting a good value.
