If you are planning to buy a car, then you can consider buying a used car which will save money and has much more benefits. During the car purchase, the primary and important aspect is the budget. There are many models available in the market and they fall in different price ranges. You can buy a car which is affordable and fall within your set budget. If you do not have enough money, then it is wise to purchase a good used car. However used cars offer more value for money quotient compared to the new cars. Hence you can invest on them, even though you can afford a new car.
To have an elaborate view on this topic, we will now go through the advantages and disadvantages of buying used cars briefly. First you have to remember that the advantages or disadvantages can alter depending on the purchase mode. There are mainly two modes for purchasing the used cars. One is through dealers and the other one is directly from the owners itself.
When you Purchase a Used Car from the Dealer
Car dealers have different types of cars and as a result, you will have many options to choose from. We will now see the advantages and disadvantages relating to this purchase mode.
Advantages
As there are many cars available in the dealer’s showroom, there will be plethora of products for you to choose from. You can ask and know about various features available in the cars. You are not needed to make prior decision on the model to purchase. You can examine and select the car in the showroom itself. This feature can help you to select best car from the available options.
When you are purchasing a used car from dealer, it is the responsibility of the dealer to provide you with the necessary service and warranty. The warranty assurance can help you save money on various repairs in a stipulated time period. You may know about the repair costs and if you are the one paying for the regular repairs, then your bank account will be depleted in no time. Hence the warranty assurance from a reputed dealer is always handy and can save the money. As you cannot estimate the performance of the car right away after the purchase, you may get some troubles for some months. Under warranty cover, you can get these repairs done for free of cost. Due to the replaced or repaired parts, you will not face any problems in the future, even after the expiry of the warranty.
Disadvantages
When you are purchasing the used car from a dealer, there is no scope for bargaining by a higher margin. Since these cars are provided in good condition, the dealers will not entertain any reductions. As this is not a new purchase, no offers are provided. Hence you should be prepared to pay the total amount quoted by the dealer. Never have any hopes on bargaining when you are purchasing a used car from the dealer.
The dealers usually buy the cars from the government offices, police, etc. Hence the wear and tear of the engine components is high in these cars. You should take the help of well knowledgeable person in purchasing the used car from a dealer. A wrong selection can make the purchase sore for you. Also see: Ways of purchasing a used car.
Ways of Purchasing a Used Car
There are many ways to buy a used car. Each type of transaction comes with a set of advantages and disadvantages. Let’s look at a few examples.
Purchasing Used Cars Directly from the Owners
You can also get a second hand car by consulting the owners directly. For this purpose, you can observe the classifieds in news papers, television, internet, etc. There are advantages and disadvantages related to this purchase mode too.
Advantages
As you are purchasing the car directly from the owner, at whatever condition it is, there is a large scope for bargaining. You can bargain on the basis of the condition of the car, the repairs you have to make after the purchase, accident record, etc.
When you are purchasing the used car from a family head or an elder person, then there are high chances that the car is in good condition. Statistics show that elder people, family heads and women show more responsibility in driving. They care for their family and hence they do not drive recklessly or at high speeds. So you can expect a good running car without any accident record from these people.
Disadvantages
If the owner of the car is younger, or below 30 years of age, then you should be careful during the purchase. Generally drivers of age group between 20 to 30 years are responsible for many accidents and rash driving. As a result, there are many chances for the screwed up engine or previous accident records. Examine carefully while purchasing the cars of youngsters.
The purchase of a used car under multiple ownerships is dangerous. This can do no good to the engine and other parts of the car. As you are purchasing the car from an individual, you will not get any warranty assurance and hence any repairs thereafter can make a hole in your wallet.
Apart from these two sets of advantages and disadvantages, there are general points to be noted too.
General Advantages
If you buy a new car and want to sell it right away due to some reasons, a depreciation value of 20 percent is accounted. For second hand cars, you pay the amount after subtracting the depreciation amount. If you are selling the used car right away, you can get the same amount you have invested on the car.
The insurance coverage for the old cars is less. Insurance premium is calculated on the basis of used years and it decreases with the increase in years.
The used cars are perfect for new drivers. Since they are prone to minor accidents, any damage to used car is least bugging compared to the brand new car.
General Disadvantages
There is scope for fraud and you have to be careful during the used car purchases. Carefully observe the documents and only proceed if you find them legitimate. You may not get the new features available in modern cars like traction control, ABS, etc (this is the case if you are investing on very old cars). Since the insurance coverage does not provide you assurance for all types of damages, you may need to shell the money for some repairs.
These are the advantages and disadvantages of buying used cars.