Many of these people realize the value (not to mention the savings) that go along with such a purchase when compared to buying a car that is brand new.
As soon as you purchase a brand new car, the minute you drive it off of the parking lot as the new owner, its value depreciates significantly. For instance, when I first bought my Jeep Liberty brand new in the summer of 2007, the moment I drove it off the lot, its value went down…a lot. I know this because out of curiosity, only a week after I had bought it, I took it to a local dealership to ask them how much it was worth. I also checked its value by using the Kelley Blue book system. As a new car owner and first time car buyer, I was shocked and a little disappointed. I was only beginning to learn a very hard lesson about making wise, well thought out, well informed decisions about purchasing a car.
I used to think that buying a used car made a person look bad. After all, anyone of any sort of status or who has money doesn’t buy used, right? Wrong. There are many people who find that they are happier and much better off when buying a used car versus a new car. The key is to make sure that you do your research ahead of time. A used car can be a great vehicle to have if you simply check the history on it, get a Car-fax, speak to the owner and have your local mechanic look at to make sure that it is a sound vehicle. But not everything goes according to plan.
When my boyfriend purchased his car a few years ago, he had been in a rush because only days before, another driver had struck his vehicle and totaled the vehicle. Now, vehicle-less and tired of asking his friends for a ride to work, he finally found some time to take action. He visited a local ‘Mom and Pop’ dealership in which he found what he thought was the perfect vehicle for him. Without any further ado, he simply bought the car. Almost as soon as he was clear of the dealership, he recognized that there was a problem with the car. He ignored it until he found himself (and his car) in the repair shop. Over $1,400 later, it turned out that he needed to have his catalytic converter replaced. In retrospect, whenever I talk to him about this experience, he says that if he had to do it all over again, he would have taken the car to a local mechanic to have it inspected prior to purchasing it.
Another problem facing those who buy new versus those who buy used is practicality. What can you really afford to buy? Not only this, but of what you can afford to buy within your budget, what are you going to be using the car for? Having a sports car may not make sense in your life right now whereas a four-door-sedan may do the trick. Just make sure that you do your homework to figure it out!