The used car market is a huge one for obvious reasons – many folks buy them. Sales within the United States alone amount to over 350 billion US dollars annually and this represents about half the auto retail market within the United States. Also, the United States is among the highest exporters of used vehicles.
A used or pre-owned car is one that was initially someone else’s or has been owned by one or more persons. It is sometimes also referred to as a second-hand car. Because the value of automobiles depreciate, one bought yesterday, last week or last month and sold today has become a second-hand car and can’t be sold, under normal circumstances, at the same price for which it was initially purchased. You can read more about this here.
There are a variety of ways and outlets through which these vehicles are sold. They include independent dealers, dealerships, rental companies, franchises, leasing centers, auctions – both physically and online, as well as private sales.
While at some outlets, you may bargain and negotiate the worth of a vehicle, some retailers do not allow that but rather offer a no-haggle price. This is often true when the vehicles are certified and include extended service and maintenance plans and or warranties.
Looking at the very fact that cars are not really investments, except when used to generate some form of income, there are several reasons and factors why an individual might want to shop for a second-hand one. It is one property that takes your money rather than give thanks to fueling, maintenance services, and repairs.
Reasons for Buying a Used Car
Lower Cost and Less Depreciation
The moment you drive a brand new car off the lot, it loses value thanks to depreciation. When buying the same vehicle as used, you may be able to pay half the initial price. The biggest depreciation is borne by the original buyer with you as a second or third owner bearing a progressively lower share of it. It is therefore easier for you to resell it close to how much you bought it in a few years. This is not so for the initial owner.
Buying a second-hand vehicle does not mean that it won’t depreciate; it just means that you will probably gain more than what you lose due to the depreciation as compared to buying the vehicle new.
Fulfilling a Longing or Desire
A person might truly desire to possess a vehicle but may not be able to afford the price of the new one. Since buying at a second-hand value is way cheaper, the person will have the satisfaction of fulfilling a longing of owning a car they love without spending as much as they would have for it. What’s more, the car may even be gotten in first grade condition – that is, almost new.
Lower Insurance Fees
The higher the price of a vehicle, the higher the premium to be paid for insurance. Buying a used one translates into paying a lower amount as premium for the insurance of the same vehicle. You may also be able to avoid sales tax when buying a used vehicle in some states in the U.S.
For other reasons for which a used vehicle may be a better option, you can check out this article here: https://www.motorbiscuit.com/5-pros-of-buying-a-used-car/.
How to Buy a Used Car in Montgomery
Montgomery is the capital of the U.S state of Alabama and as a resident or visitor here, there are many options available to you when buying a second-hand vehicle. With the sheer volume of these automobiles available and the associated risk, buying one may sometimes be overwhelming but it does not have to be so especially if you follow these tips:
Know How Much You Can Afford
You either fully pay for your vehicle through your savings or get a loan to buy it. If you will be taking a loan, it is usually recommended that your repayment should not be more than 20% of your income. Do not also forget the associated cost of using a car: fuel, registration, insurance and general maintenance costs, as you budget for it. Also, if you are buying an out-of-warranty car, it is a good idea to set aside some funds to cover repairs that may not be expected.
Do Your Research
In purchasing a second-hand vehicle, it is necessary to carry out different forms of research ranging from the cost of the vehicle you want and where to buy it. Once you have these two locked down, further research to carry out should look at the history of the car, its warranty status and other such info.
Buying from reputable dealerships that sell used cars in Montgomery, AL will save you a lot of stress. They typically sell certified cars with options for servicing and maintenance and they also offer you a warranty. Although they might seem costlier than buying from a private party, if you want peace of mind, it is in your best interest to buy from a dealership.
Visiting the Dealership at a Right Time
Sales people typically have targets that they would like to meet. Buying from them towards the end of a month or a quarter will likely get you a better deal. The idea behind this is the fact that they are trying to close as many deals as possible to meet up with their target and therefore they may be able to offer you discounts on your purchase.
You can get a great deal on a used car if you know how to navigate your way around the market and are willing to do the work needed. Remember that purchasing from a dealership reduces the work you need to do and ultimately gives you peace of mind as you can be sure the vehicle you are buying is in good condition. Additionally, you are likely to get cheaper plans on servicing and maintenance since you purchased it from them.