With thousands of used car dealerships across America, one can safely say that the used car industry holds a fair contribution to the economy. Their numbers also illustrate a popular preference for used cars to brand new ones. This comes with a lot of reasons of course. Here is a quick pros and cons list of buying a used car.
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| Image source: meetauto.ca |
One of the biggest pros is the price. A used car will cost you less up front compared to a new car. And with new regulations set by a manufacturer’s certified pre-owned programs, the chances of getting a garbage deal on newer cars are slim. Insurance premiums are also lower for pre-owned cars.
Pre-owned cars present a number of cons, which add to the stigma. The biggest of them is the phenomenon of the “lemon.” A car might look fine outside, but could be a minefield of problems in its body. These problems could take thousands of dollars to repair and recur at an annoying rate.
Secondhand cars can also be bought from private owners. Buyers should be aware that the warranty is non-transferrable. The same goes for service warranties.
The biggest con of course is financing. If you’re not clear with the math of what you’re paying, high interest rates can make it look like you’re paying higher than the going rates for a brand new model.
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| Image source: sailanddrive.com |
Jeff Lupient is the president and CEO of the MN-based firm Lupient Automotive Group. He went to college at Hamline University, where he obtained a degree in political science. If you’d like to read more about the automotive retail industry, visit this website.
