There are many stories going around about used car dealers and how unscrupulous they can be.
Many customers have been taken advantage of by dealers, and as a result, many who have heard of (or had) bad experiences with dealers go out of their ways to avoid transacting with them again.
However, there are 2 sides to every coin, and as there are people out there with bad testimonies, there are people who have gone to used car dealers and left with a very good deal.
If you need tips on what to do when buying from used car dealers, follow this link. In this post, the focus is on the many benefits that can be gained from buying a used car and dealing with a used car dealer:
There are Used Cars in Very Good Condition
The biggest issue people have with buying used cars, apart from dishonest dealers, is that they fear that the car will not be in good working condition, and that it may not last for long enough. This is a baseless fear. Most new cars are made to work perfectly (or as near perfect as possible) for the first 100,000 miles.
The used car market is populated with many cars that have mileages way less than that. With a little expertise, you can find a used car that is in perfect mechanical and physical condition, so much so, that it is as good as new.
Used Cars Cost Less, and Have Lower Depreciation
You’ve certainly heard the saying, “a new car loses a chunk in value as soon as it is driven out of the dealers’ lot.” Yes, the saying is very true, and this is another reason why buying a used car is a good idea. You can get good value with less money e.g. an earlier model of Porsche, say 2008, can be bought for the same price as a 2013 Honda.
Also, used cars don’t depreciate as quickly as new cars, so you can still get a good amount if/when you decide to resell. Yes, they depreciate too, but, at least, you won’t lose that initial bite that is taken off every new car as soon as the buyer drives it home.
Used Cars Do Not Have Sales Tax
In most states, new car dealers have to pay a sales tax when a new car is sold off. Many of these dealers pretend like sales tax don’t exist when advertising a new car to you, but it does, and the amount (sometimes running into thousands of dollars) is added to the final amount.
Used cars, however, do not attract sales tax, and in states where they do, they are way less pricey than the tax on new cars.
Registration Fees Are Reduced for Used Cars
A car’s annual registration fee is determined by how much it is valued at, and the year it was built. You pay the highest amounts for the first 3 years of a car’s lifespan, and after that, the rates reduce significantly, it reduces even further after 5 years. Therefore, by buying a used car that is 3-years-old, you can shave off almost a thousand dollars from registration fees. You can shave even more by buying a 5-year-old car.
With Used Cars, You Get All the Extra Features for Free
When people buy new cars from dealers, they are often asked to pay exorbitant prices for extra features they do not need, and did not ask for. The famed “anti-rust coating”, a pinstripe and so on. These features can be gotten for way cheaper prices at an after-market, but when buying a new car, you have no choice but to accept it.
The new car buyer’s loss is the used car buyer’s gain. When you buy a used car, all these features would have already been installed by the first user, so you do not need to pay for them again. To make the deal better, these features hardly add any more to the price of the used car, so you don’t pay more for cars that have them. And even if the features are missing, you can get them at an after-market installer, and you won’t have to pay through your nose.
With Used Cars, You Can Avoid New Car Dealers
If there are a group of people in the automobile industry worse than used car dealers, they are new car dealerships and their slick-talking salesmen. When you walk into a new car dealership, be ready to pay over the odds for anything and everything. No matter how street-smart you are, it is certain that a new car dealer will find a way to squeeze an extra hundred dollars off you. If it is not “destination fees” and “shipping charges”, they will make you pay for “dealer preparation”; whatever that means.