Why Buy a Used Car?
There are number of reasons why a shopper would want to buy a new car...prestige, dont want to be bothered with potential service issues, Keeping up with the Joneses, etc. Why then are so many more used cars sold annually in the U.S. and Canada than new cars?
In A Word: Cost.
The cost of buying a used car will be less. Someone else will have taken the hit for the initial depreciation. Many car buyers feel that paying an extra $3000, $5000, or more for a new vehicle is too expensive a price to pay; especially when the bulk of that extra expenditure gets eaten up by depreciation when the new car is driven off the lot.
You will also save money when buying a used car by not having to pay for certain items that a new car dealer will charge. For example, the freight cost is included in the sticker price of every new car, and the consumer is forced to pay it. Dealer advertising charges, at a national level, although "hidden" on the dealer invoice, are usually absorbed by the new car buyer. In addition, new car dealerships will often charge for expensive "add-ons" that push up the price of a new car, usually called rust and dust. This includes rust proofing and paint protection usually costing thousands of dollars. A used car buyer saves money by not having to pay upfront for such items. Plus, the lower selling price of a used car will also mean lower price for HST, which is generally based on the vehicle price.
In A Word: Choice
Every used car is different and this gives you the ability and advantage to find your desired vehicle at a price that fits your budget. If you are buying a new vehicle, the price will be fairly well established. The car will have a Manufacturer`s Suggested Retail Price or MSRP and an Invoice price (what the dealer pays for the car) and somewhere between those two numbers is the price you will pay.
With a used car, because of variances in mileage and condition, your field of choices and the prices you will pay--are widened. For example, if you have decided that a 2009 Toyota Camry will best fit your needs and wants, you will be able to choose between cars that are in near perfect condition, with low mileage (and at a higher price) and those that have somewhat higher mileage and perhaps are in less than perfect condition (and at a lower price). With some mileage and condition consideration, you can probably get a car you want at a lower price, or get more equipment and options without spending more money. You cant do that with a new car.
For many car buyers, because of the set pricing of new cars (the average new car is well into the $20,000 plus range), there is no alternative. Their budget absolutely determines what kind and level as well as options they buy. When buying a used vehicle, customers can get as much value as possible for their dollars spent.
Final Words: Other Considerations
If you choose to buy a used car, you will want to have assurances of quality and reliability; the same as any car buyer. The choice of a used car is a bit more complicated than that of a new car. Not only do you have to pick a make and model, and a place to buy it, you also have to contend with decisions such as mileage, condition, and age...none of which are a factor in new cars, but are important considerations when buying a used car. Additional factors such as financing, warranties and servicing (which have more variables on used vehicles) are important when choosing a used car dealer and considering the purchase of a used car.
It is important to narrow your field as soon as possible. Don`t spend endless hours looking at used cars that don`t fit your budget or don`t fit your needs.