Pre-Owned Can Be a Smart Financial Bet
Posted by peter88
from the Automotive category at
05 Aug 2011 01:19:24 pm.
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With the widespread availability of leases, many pre-owned vehicles are lease turn-ins that are only a few years old and in relatively good condition. And because leases limit the amount of mileage that can be put on the vehicle in a given year, chances are a lot of those pre-owned vehicles are also low in mileage.
Used-car pricing almost always will be lower than a vehicle off the lot. This is a big draw to many consumers looking to save money on a vehicle. New cars depreciate as soon as they are driven away from the dealership, so even a vehicle that is only a few months old will cost less than it did brand new.
Buying a pre-owned car at a dealership also may come with a warranty. In order to liquidate their stock of used vehicles, oftentimes dealerships will certify the vehicles are in good condition and offer warranties that cover many of the same items one would find with a new vehicle. Certified vehicles can be a safer investment, primarily because the service history and the condition of the car is verifiable. Buying from a private owner may be a riskier purchase.
That doesn't mean that buying a used car from a private owner should be avoided at all costs. Many private sellers are honest individuals and will offer proof documenting the vehicle's maintenance history. There are also car history reports that can be obtained using the VIN number on the vehicle to check to see if it was in any major accidents or had other kinds of damage.
Buying used is also a green investment. While a brand-new hybrid may certainly save on fuel use, the energy needed to produce that new hybrid can be considerable. Purchasing a used car means less demand for a new one to be made.
Another advantage to used vehicles is that insurance premiums may be lower. That's because new cars usually require comprehensive insurance coverage, when a used vehicle may only require the basics.
People looking to save money on a vehicle should consider pre-owned cars as viable options for their next vehicle.
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