Four Good Reasons Why You Should Buy Used Cars

Recession or no recession? It may not be clear to us, especially if we are not economists, whether we are in a recession. But one thing is clear: We want to save money! Prices on gas are at an all-time high and seem to be getting higher all the time. This makes a new car payment even more oppressive. The housing market is definitely a buyer's market, but it makes one wary to pull out home equity for major purchases as long as the prices on houses keep falling.

Solution? Buy used cars. We all love to buy brand new but you may be surprised to find out what a good deal you can get when you buy used.

Buy Used Because: You Will Get More Car for Your Buck

Had your eye on a special car but could not afford it? Did you know that just by buying an earlier model, you can get behind the wheel of some of the most coveted luxury vehicles for less than the cost of a new Honda subcompact car? Jaguar X Type AWD with leather, sunroof, fully loaded retails for $33,000 new but you can purchase a one-owner, 2004 model with 38,000 miles for less than half price at only $15,585 (www.specialty-imports.com). You can even get into a Lexus luxury sedan for less than the cost of a new Ford Taurus sedan or the Chrysler 300C.

According to Edmonds.com, even buying a one year old vehicle can save you 20-30%. Financing on used cars can be as attractive as new cars because of credit unions and rates as low as 4%.

Buy Used Because: Certified Cars are Just as Good as New

Things have improved tremendously in the past several years. You can now buy a used car with warranties and certifications that make it as good as new. Certified cars (depending on who is doing the certification) go through a rigorous inspection to determine and maintain the quality of the vehicle. Many used cars are still under factory warranty as well. You can get the reliability of a new car thanks to these certifications.

Honda Certified Used cars are a good example of why you should buy used. It is given a 150 point inspection which includes both mechanical and appearance. Anything found to be substandard is replaced or reconditioned using genuine Honda parts.

Also consider that the history of a car is much easier to track now. Thanks to CarFax and VIN number on the car, you can easily find out what the car has been through. Many dealers even offer a free copy of the CarFax as part of the certification process on a used vehicle.

Buy Used Because: A New Car Depreciates too Quickly

New cars can depreciate up to 30% in just one year of ownership, according to dealer Gerrick Wilkins. This means you wind up owing more than the car is actually worth and that is not a good thing should you have an accident. Most insurance companies only cover what the car is worth...not what you owe. If you take a car that has already depreciated (usually the first year is the worst for depreciation) you are well on your way to saving money.

Buy Used Because: You Can Get What You Want

Think of the last time you went car shopping. Did you research online or did you go browse through cars at the lot? When I was in college, I spent three weekends at different car lots looking for an affordable and practical car. Thanks to the wheeling and dealing of car salesmen, my experience was miserable and high pressured. Now, most people check out cars online first. They have much more information at their fingertips and can avoid dealerships until they know what they want.

With this electronic age and with more frugal buyers, there is a new demand for used vehicles. The local, independent used car lots seem to be springing up all over. In the past, these lots have been stereotyped as the high pressure, low inventory jokes of the car business. But today there is a new breed of used car lots.

Specialty Imports is a local used car dealership in the Birmingham suburb of Trussville. They have taken a new approach to selling cars. Their slogan, "If you can dream it, we can get it," seems lofty but their claim is valid. Specialty Imports utilizes the internet for business. They not only sell online at eBay but they also take orders for cars. Because car buyers today are far savvier than in the past, Specialty Imports and other dealerships are offering locator services. This way you do not have to settle for second best or what is on the lot. They can locate the car you want at the price you can afford and that will save you time as well as money.

Sources:

Specialty Imports
Honda Certified Used Cars

Edmunds.com