When buying a car, there are various options to choose from. You not only consider the model and the make of the car but also whether you will buy a new car or a used car. Based on your financial capabilities you can make your buying decisions. Used cars give the owner the ability to own a car at a much lower cost.
Pros:
1. No limitations: When you buy the car, you can drive as many miles as you want. There will be no limitations or any additional fees. You will also have total control of the car to do anything you want unlike in leasing the car.
2. Save on cost: Buying a used car is cheaper compared to buying a new car. It gives you the opportunity to save up for the car and be able to purchase the best performing model in cash.
3. Low insurance rates: When you buy a used car, you will pay lower insurance rates as compared to buying a new car. High insurance rates may lead to significant savings especially in your early twenties.
4. Complete ownership: Once you buy, you will have a complete ownership of the car and you have a right to resale even at the same value you bought it or use it as a collateral when seeking financial assistance from banking institutions.
5. Save on depreciation: When buying a used car, you pass the depreciation to the original owner since new cars depreciate heavily within the first three years.
6. Sales taxes: New cars are subjected to state sales tax so when buying a new car you need to add an extra amount for the tax. Used cars have no sales tax.
7. Reduced registration fee: Car registration fees reduced based on the car’s value and the model year. Buying a used car, you will pay less registration fee.
8. Condition: Most cars can last 100 000miles, therefore, you can find a reliable, scratch-free, excellent performance, and in good mechanical shape.
9. Customize the vehicle: Ability to modify the car to your likeness. If you need extra features, you will pay less for the features compared to buying for a new vehicle.
10. Reduced environmental pollution: Buying a used car reduce the amount of carbon dioxide emitted. New cars emit more gases into the environment.
Cons:
1. Reliability issues: Used cars need repairs and frequent maintenance making them unreliable. You need to set money aside for repairs on the car adding more on maintenance expenses.
2. Require flexibility: sometimes you’re required to compromise on the color and model of the car since you need to buy a car with better mileage, good performance history and with the best price.
3. No warranty: When buying a used car, there is no warranty left on the car unless it is the latest model. You will have to incur all the expenses in maintenance and servicing the vehicle.
4. Higher interest rates: Many lenders offer high-interest rates to used cars as compared to new cars.
5. Increased expense: Before buying a used car you need to have it thoroughly inspected by a mechanic and this adds to the cost of buying the vehicle.
6. Financing issues: Many financing institutions prefer to give loans for new cars rather than in used cars
7. Routine checkup: Used cars require frequent servicing and replacement of some parts like battery and tires to reap the maximum benefit of the vehicle.
8. Not sure of the true condition of the car: You may not know the true condition of the car and how the previous owner maintained it.
9. Unpredictable resale value: The car prices vary from one seller to the next, some may ask for a huge down payment of the vehicle.
10. Highly monthly payments: Compared to leasing a vehicle, monthly installment for buying a used car are a bit high.
