Pros & Cons of Used Cars

Buying a used car has benefits that can easily outweigh the pitfalls. Bear in mind a few key factors when shopping around for a used car.

Benefits

Used vehicles often cost significantly less than new cars. Even buying a one- or two-year-old car can save you thousands of dollars because most new cars lose value the second you drive them away from the dealership.

Considerations

Buying from individuals who do not work for a dealership, also known as private-party sellers, can offer the best savings. By purchasing a used car directly from the previous owner, you can avoid costly mark-ups and the high-pressure atmosphere of most dealerships.

Warning

The biggest disadvantage of buying a used car lies in its unknown past. To minimize this risk, the Federal Trade Commission recommends asking the previous owner for the vehicle's repair records and having the vehicle inspected by a trusted mechanic.

Misconceptions

Although many people assume that a vehicle purchased from a dealership will include a warranty, this is not always the case. Obtain any implied warranty information in writing before finalizing the sale.