Many car buyers today opt for the used car over the new one, however is it a right option for you? Whereas lower used-car rates are an important factor for many consumers, there is so much to consider when it comes to making the right decision to buy used cars fresno. Here are some pros and cons of buying used vehicle:
Pros of used car
The used-car buyers will take benefit of the rapid depreciation in value of the new cars to tune of 20% in a first year and 40% after 3 years. The lower average rates for the preowned cars offer much better chance to pay for the purchase in cash, and making the larger down payment.
- New car depreciates much faster than the used car. Actually, many new cars will lose over 40% of the original value in its first year. But, it is not a case with the used car. Thus, it is where you will gain with the used vehicle.
- With lower rates, there is not any surprise that the used vehicles have the smaller average loan than the new ones. That depends on terms of a loan that can translate in lower monthly payments as well as smaller interest charge.
Cons of used car
- Despite improvements in the quality, this is one important reason that the used cars are less reliable than the brand new cars. If a car is older then you will have to spend more money on the repairs, particularly if it isn’t covered by automaker’s warranty.
- Driving behavior of the previous owners plays an important role in the reliability that is why the vehicle history report becomes important. The reports have complete record of accidents, title status and service history that includes notations for the salvage, flood, rebuilt, and lemon-law titles.
- One final disadvantage is you will need to pay the higher rate of interest when financing. Most of the lenders just charge higher rate of interest on the used cars. The new cars will come with the financing incentives at 0%, so they give a benefit here.