Is Purchasing A Pre-Owned Car A Good Investment?

When it’s time to purchase a car, some folks wonder if a quality pre-owned car is a good investment. There are a number of benefits to buying a used car, including the opportunity to buy a nicer model of car at an affordable price. If you are in the market for a “new” car, consider a quality pre-owned vehicle before making your final choice.

Depreciation

Everyone has heard the claim that a new car loses value the minute you drive it off the lot, and the largest depreciation is the first year and be 40% of the original price. The new car depreciates every mile, day, and month, of the first year at a rapid rate. The significant first year depreciation can be beneficial to a person wanting to purchase a quality used car, and the new owner won’t have to deal with first-year depreciation. A pre-owned car will be “broken in” and that can mean a few scratches or a couple of small dents. For most people, the money saved is well worth a couple dings.

Getting a Good Price

Knowing the value of the car you want to purchase will help you negotiate a good deal. Two websites offer you accurate values on both used and new cars. Edmunds and the Kelly Blue Book site, KBB will give you the information you need to make a deal on the car you want to purchase. There are plenty of used cars available, so take your time and shop around for the right car at the right price.

Checking a Car’s History

According to CNN, Carfax and Auto check can check the history of any car if you supply the vehicle identification number (VIN). Both of these companies can tell you what the mileage was the last time the car sold, and you need to be sure the mileage has not been changed to falsely increase the value of the vehicle. If a car has ever been sent to a junkyard, a salvage title was issued and this information is also included in the report you will get.

Insurance Rates

Insurance is an absolute necessity and required in every state. You will save some money on your insurance rates with a pre-owned car, but it always pays to compare companies to get the very best rate.

Buying a quality pre-owned car can be a good investment if you approach the purchase in a practical and realist way.

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