| Each year, out of all the vehicles bought in | | | | terms on an older vehicle. |
| the U.S., 41 million are used cars compared | | | | |
| to only 16 million new car purchases. | | | | 2) PROS - On the other side, buying a used |
| | | | car could benefit the buyer in several ways: |
| Since purchasing a car is the next financial | | | | |
| investment made by US citizen other than | | | | * The original owner of the car received the |
| housing, it is important to determine if | | | | depreciation hit. The market value of the new |
| buying a used car is worth your money. | | | | car decreases from year to year. An average |
| | | | 30% of its value within three years from the |
| 1) CONS - Here is a list of the disadvantages | | | | time it was bought, so buying their car would |
| of used-car buying: | | | | save you a lot of money. |
| | | | |
| * The options of cars are limited, so the | | | | * Unlike purchasing a new vehicle with high |
| search for the right vehicle could be | | | | insurance fees, you will receive a lower cost |
| lengthy. | | | | of insurance if you choose to buy second-hand |
| | | | cars. |
| * The buyers have no idea if the car was | | | | |
| treated. Used cars usually have worn | | | | * Although buying new and used cars both |
| consumables such as hoses, tires, shocks, | | | | provide loans, lease, or money-saving the |
| filters, fans and clutch. | | | | majority of dealers who sell used cars often |
| | | | have shorter loan terms. |
| * Although used car dealers provide a | | | | |
| warranty, it is only limited to a couple of | | | | * If your investment is decided based on |
| months unlike purchasing a new car with full | | | | appearance and gas mileage, choosing a used |
| warranty. Certain maintenance on your | | | | car would guarantee the value and reliability |
| purchased second-hand car could be more | | | | it has provided over the years. |
| expensive. | | | | |
| | | | * A used car would provide your dollar more |
| * Purchasing a second-hand vehicle would | | | | flexibility. Compared from buying a new car |
| offer you a lower trade-in value. | | | | that would eat all your finances, buying a |
| | | | second-hand car would allow you to purchase |
| * The main disadvantage of purchasing old | | | | other accessories such as air conditioning |
| cars is that it has an unknown quantity. | | | | that would cost approximately US$200 to $900 |
| Whether the dealer has worked the vehicle to | | | | extra. |
| make it attractive for the test drive, the | | | | |
| buyers are still unaware of the repair bills, | | | | Buying your used car could waste your money |
| economical issues, and its reliable | | | | if you fail to do your research, compare |
| transportation. | | | | dealerships, and be aware of the car's market |
| | | | value. Be a wise used-car buyer. |
| * It is difficult to negotiate fair financing | | | | |