What are the benefits of buying a used car?

Why people prefer buying a used car these days? The main reason for this is no doubt the low cost of purchase and the affordability. Buying a new car is far more expensive than buying a used car. As soon as a new car leaves the dealership it depreciates in value. A new car loses about 30 percent of its value in the first two years of the ownership. The depreciation value decreases in the subsequent years though. However, in case of collectibles and antiques, the cost is always high regardless of being used.

Another benefit of buying a used car is that a car loses its value at a rate of about 5 percent after the three years of ownership so if one buys a used car the depreciation value is far less than that of a new car. If one buys a car that is less than one year old, there may be a possibility that the car is still covered by its warranty.

While buying a used car, one has a wider option for selecting a car. Cars of all ages are available, new as well as very old. One can buy a quality car of choice. The price of a used car is almost half less than the price of a new model. One can buy a used car within the budget as one can snap up a bargain too. Even within a low budget, a good used car such as Suzuki cars can be bought. In some cases even an old model of a good car as Mercedes can be bought within a low budget.

A low-priced car has a low insurance premium as compared to the new car insurance. In addition to the price of the car and the insurance the maintenance cost and the depreciation value is also low as compared to a new car. This saves a lot of money. Another advantage of buying a used car is that the condition and the working of the car are crystal clear. The working and the problems faced by the car can be easily evaluated by looking at the previous service history of the car. Looking into the previous service history helps one to make a wise decision while purchasing a car.

In most of the countries there are no organized companies that deal in used cars but as the trend of buying a used car is increasing a lot of companies have started selling used cars. Individual selling is also very common these days, as snapping up a bargain is easier in this case. People usually advertise about their cars in the newspapers. However it is advisable that one buys a used car from a reputable car dealership as they provide quality cars that have been thoroughly checked. They have full record of the ownership. This is helpful as a lot of people try selling good quality stolen cars at very low price. This can get one in serious trouble. Some dealerships also provide the service that saves a lot of hassle. This not only gives the legal protection but also the peace of mind.

All these benefits have boosted the sales of used cars all over the world. Ample selection and improving reliability attract people. Many renowned companies such as General Motors, Suzuki motors etc have set up used car businesses in many countries.