Understanding Automotive Problems

Correcting The Misconceptions And Half-Truths About Buying Used Cars

If you need a new ride but can't pay the price for a new car with zero miles, buying used is the way to go. Don't let these common misconceptions and half-truths get in the way of your plans. 

Misconception: You simply can't find used cars with low mileage. 

Used cars with low mileage may be a little harder to find, but they are definitely possible to find. Not everyone will buy a new car and put a lot of miles on it before they decide to trade it in or sell it. For example, you will find a lot of people that trade in their vehicles before they have 100,000 miles or simply trade in every year to get the latest model. 

Half-Truth: Used cars do not hold their resale value. 

In some situations, this may be true; some used cars with high mileage may not hold their resale value very well. However, the rate of value decline is really no difference between a new or used vehicle. The only difference is that older cars may lose their value a bit faster simply because of their age or how much mileage is on the odometer. If you believe you may be selling your used car soon after purchase, be sure to opt for a vehicle that has relatively low miles and that is not all that old. 

Misconception: Insurance is usually higher on used cars. 

On the contrary, insuring a used car is oftentimes cheaper than insuring a new car. The reason for this is that used cars may not be as valuable, so if the car is a total loss after a collision, the insurance company does not have to pay as much to cover the costs. 

Half-Truth: Used cars are always overpriced. 

Used cars are rarely priced over their market value when they are placed for sale at a used car sales lot. In most locations, dealerships are actually limited in how much of a markup they can ask for on a certain used vehicle over its fair market value. The majority of car dealerships that specialize in used vehicles will examine nationally established and regarded value listings to determine a fair price point for any vehicle they are selling. If you are not buying from a car lot or dealership, you may occasionally run into an individual who is asking a bit too much for a used vehicle. Therefore, it is always a good idea to do a bit of your own research to determine how much a car or truck is actually worth. 

To learn more, contact a resource like Car Craft Auto Sales, Inc.