Buying a used car is considered a risky investment. There is a chance it being unreliable or of poor shape. Clients are always afraid of purchasing a used car especially if they do not know the previous owner. They might even believe no proper provision of care for the car. Before buying a used car, you should counter check to ensure it is legit and it is in good shape before spending your investment on the car.
Saving thousands of dollars is everyone’s goal. A used car usually is sold at a lower price than its initial price. Paying less for the car is advantageous as it saves you money when you are on a budget. Chances of one having many cars are also high. You may buy two cars on second hand and the price can be directly proportional to that of a new one on the market that you intended to purchase. Paying a lower price is the primary reason why a person would buy a used car instead of a new one. However, there are other various reasons for the purchase of a used car.
Registering a car is mandatory when buying it according to state regulations. The registration fee charged is particular to the car’s transaction price. Most states are increasing vehicle registration fee to generate more revenue. When you buy a used car, you will escape this step because the first-hand owner registered it.
A used car is of a lesser value than a new car. Therefore, the cost of insurance is low. Buying a used one has an advantage of reduced insurance cost. You can also drop some elements on the list like theft coverage and collision thus saving more money. It is also affordable to pay for the car insurance.
New cars lose about 20% value when frequently used and another 10% within the first year. Therefore most cars depreciate by 30% during the first year. A car can depreciate up to the fourth year retaining only half of its original value. After the fourth year, the depreciation rate lowers. Finding a three to four-year used car on sale and purchase it will be advantageous. It’s because during the second-hand car ownership, depreciation rate has lowered and you can resell it with no loss or less in equity. Used cars pose a greater advantage on value, and you can drive it until it is not drivable.
Studies show that between 12-28% of carbon dioxide emitted during a car’s life cycle are emissions during the manufacturing period and the first shipping. Every time a car is on the move, it consumes a lot of fuel and increases environmental pollution because most new batteries are enemies of the ecosystem. A used car is easier to sustain because it has passed the hazardous stage.
In the previous years, buying a used car would be less safe as buyers had to purchase features such as anti-lock brakes, electronic stability control among other safety features. However, this is not the case as most cars manufactured after the year 2009 contain all the safety features. With the advancements over the years, cars made in 2012 have stability control features that are mandatory, a rule passed by the National Highway Safety Administration. Safety features have reduced the rates of car accidents making used cars now safer.
Gone are the days when used cars were a disappointment. Nowadays, they are reliable especially with the introduction of certified pre-owned (CPO) programs managed by used-car dealers. You purchase a new car dependability without paying its initial price. New car buyers are entitled to a leasing contract and most are of a three- year period term. The car maintenance, its condition and mileage issues are restrictions accompanied by the rental contract. These limitations encourage the car owners to be careful on their vehicle maintenance because they are aware of the fines charged when they do not adhere to the regulations. At the end of a lease term, the CPO dealers take up the car. These vehicles when purchased by a second-hand buyer, they will be in good shape, have low mileage, off- lease and are reliable. The certified pre-owned dealers have made it easier and trustful to purchase used cars.
Obtaining a vehicle history report is another way of confirming the used car is legit and it is possible by checking the Vehicle Identification Number (VIN). There are providers of the history reports such as Carfax and Autocheck. They provide information such as any accident, calamity or repair record, mileage validation, the number of previous owners and previous registration status whether a taxi, personal, lease, fleet among others. Buying used cars is a trend in most states and a lot of people opting for them.