2.3 The Advantage of Buying a Used Vehicle
2.0 Buying New or Used
After having looked at the up and downsides of buying a new vehicle, we can now take a look at the advantage of buying a used vehicle.
The used vehicle market is vast and there are many traps that a consumer can easily fall into.
Hopefully by reading these articles we can navigate clear of the most common mistakes and save you money along the way.
Advantage of Buying a Used Vehicle
More options, More choice
Lets start with the the most obvious point. Where as a brand new vehicle with the top of the line features will cost you an arm and a leg, that same vehicle after a few years can easily fit your budget.
New vehicles depreciate approximately 19% to 25% in the first year of life, so that means huge savings for you.
You now have the option to choose between makes and features that would normally be out of the question for your budget.
Lower Overhead
Instead of being limited to purchasing a vehicle from a new car dealership, you now have the option of the vast selection of used dealerships and private sales. New car dealerships have certain standards and mandates from the manufacturer. For example, the manufacturer can force the dealership to upgrade or build new buildings to maintain image. That translates to increased overhead and higher prices for the consumer.
Used dealerships don’t have that and keep their general costs down. Even better, private sellers have zero overhead and are motivated by other factors besides making a profit, to sell their vehicle.
Manufacturer and Extended Warranty
Depending on how old you new, used vehicle is, most of the time the manufacturer’s warranty will still cover you vehicle. The manufacturer’s warranty is directly associated with the VIN (Vehicle Identification Number) of the vehicle, and not that actual customer. So it warranty transfers over.
And with most manufacturer’s offering 60,000 km comprehensive (or 3 year) and 100,000 km power train (or 5 year), the biggest advantage of buying a used vehicle is that you are still covered by that warranty at no added cost.
On the other hand, if the manufacturer’s warranty has expired, used dealerships can sell you extended warranty to give you that ease of mind. Although you are going to have to pay for this warranty, you can decide how extensive you what the coverage to be. And when you are saving ten’s of thousands of dollars off the original sticker price of your used vehicle, that doesn’t seem like a bad trade.
2.4 The Disadvantage of Buying Used –>