We all know someone who has got taken for a ride when buying a previously owned vehicle. Although a used car might seem like a great deal, some fear saving a penny to spend a pound. However, many of these fears are based on common myths. Let's explore some of the top used car myths.
Some people choose to trade in their car as an upgrade even though they took good care of it. Cars with finance balloon payments due at the end of the finance period are also traded in for new cars. This helps to bypass the balloon payment due. Some used cars have come to the end of a lease. Others have simply been repossessed and the banks need to offload them, often for outstanding payment values. Older drivers may want to downscale, while young drivers might be selling up and emigrating. For some folks, it is really just a matter of affordability.
A new car loses value by up to 25 percent as soon as it is driven off the lot. Thus if they become available fairly new, used cars can be bought at a discounted price. There are of course disreputable car dealerships that price vehicles for more than they are worth, and therefore offer “easy” financing options. When shopping and test driving with the help of experts, there are bargains to be had. When looking to purchase a car, google for the car’s original MSRP as well as prices from different sellers. Look out for cars that have been recalled by the manufacturer. This happens more often than we think. Visiting sites like Kelly Blue Book will also be enlightening. Search for newer cars with higher mileages or older cars with lower mileages. If you are in the market for a used car, consider a private sale instead of buying from a dealer.
Paying cash might help with getting a discount or if you have a poor credit history. There is no other reason for paying cash or any law that says you can only buy a used car for cash. When shopping for a pre-owned vehicle, be suspicious of cash-only deals.
Many car dealers will honor original warranties that have mileage or age limits. Some dealerships will even offer a new warranty on a used car. You can also call for an independent evaluation of a vehicle history report and an independent test by a mechanic. Visit Edmunds online for further information and expert reviews and rankings.
Shop around for a trade-in value for your current car. This will help to give you a resale benchmark. Popular cars such as hybrids and electric cars can be in short supply in the used car market. The demand for such cars drives up the resale value, especially when the price of fuel is climbing and the supply seems uncertain. Other popular cars are for people making lifestyle changes and need to swap sedans for SUVs with off-road capabilities and space for mountain bikes. SUVs are increasingly becoming a necessity as the infrastructure deteriorates and potholes are on the rise. Large people carriers, with seven seats or more, will always be in demand as family cars.
Car shopping online is definitely convenient. However, there is no guarantee that the deals are better. It might be a relief not to deal with an over-eager salesperson, but at some point, there needs to be a connection with somebody selling the car in the physical realm. There is also no substitute for a test drive to get a feel for a vehicle and how it handles. Furthermore, online photos are selective about what is being shown. For example, there might be a tear in the backset upholstery or a missing radio speaker, or a million other minor indiscretions that will cause dissatisfaction once discovered after purchasing.