Many new car buyers assume that buying a used car will save them some money. The idea might sound appealing if you’re not experienced in the nuances of used car transactions.
But there are hidden costs (and benefits) to buying a used vehicle that often gets overlooked. For example, new cars come with Vehicle Identification Numbers (VINs), which track their history from day one and tell people things like when they were manufactured and where they were sold in case they ever need repairs or parts replacements down the road. With older cars, however, you could end up with an untraceable vehicle without knowing much about it.
Another advantage of buying new cars is finding out what the vehicle is worth from Kelly Blue Book or Edmunds.com. You could do this by using the “trade-in” value, which tells you what the dealer would pay for your vehicle if you wanted to trade it in.
Once you have the trade-in value, subtract that number from the cost of a new car to see how much you’re saving. To get an idea of your monthly payment, multiply the price of the vehicle by whatever percentage down payment is comfortable for you and add that number on top of your trade-in price.
Compare this to a used honda fresno, where you might not know what the vehicle is worth until you spend hours on the phone negotiating with the dealer. In some cases, this might involve buying a new battery, oil change, and inspection to get any extra money off your purchase.
You should also know that buying a used car from a private seller could be more expensive than buying from a dealership. One of the reasons for this is that sales reps at dealerships make commissions for every single car they sell. As for private sellers, there’s no incentive for them to charge less or consider your offer carefully because their livelihood isn’t on the line.
Used cars do, however, come with a few advantages over new vehicles. One of the most obvious is that used cars are cheaper than new ones. Costs like licensing and registration can be a lot less expensive if you buy a used car. Used vehicles are also more affordable in many cases if you know what to look for. You can limit the miles they’ve racked up or determine whether they have any engine problems by reading the seller’s listing or checking out online forums dedicated to used cars.