When someone buys a brand-new car, the vehicle will depreciate by 11% as soon as they drive it off of the lot. After the first year, a new car can depreciate up to 30%! If you want to get more bang for your buck, it really makes sense to look at used cars. Many used car models are only a few years old, but because they are used, they are much more affordable. Plus, you don't have to worry about depreciation.
There are many avenues you can take to purchase a used car. While some people search through sell-by-owner listings, there are distinct advantages to buying a car at a used car dealership.
You Don't Have to Worry About the Title
Some owners sell their used cars without a title if they've had it stolen or if they've misplaced/damaged it. While you can still buy the used car, it's not always wise to do so, as someone could produce the title later and claim ownership even though you've bought the vehicle!
In order to buy these kinds of used cars, you would have to make sure that you not only have the bill of sale, but that you went through the DMV for a title surety bond. A surety bond allows you to register the vehicle in the state with the missing title and get a replacement title. With a dealership, you don't have to worry about title. The dealership can easily transfer the title to your name when you purchase a used car.
You Will Have Warranties
While used cars will not have the same warranties as new cars, some dealerships still offer some written guarantees. You usually don't get any guarantees when buying a used car from an owner. If there are any issues, you'd have to cover those costs on your own. Some used cars from dealerships have manufacturer's warranties or extended auto warranties so that you can avoid expensive out-of-pocket bills for replacement parts.
You Have Financial Flexibility
When you buy a used car from an owner, he or she may not be willing to make a payment plan. Some owners are strapped for cash and just want to receive the total amount immediately. When you purchase a used car from a dealership, you have more financial flexibility. Besides payment plans, you may have the option of leasing a vehicle. When you lease a car, you will only pay for the interest and the depreciation at the end of your contract. So if you are leasing an older model that's already depreciated, then your lease could be quite affordable.
You Have More Options When It Comes to Parts
Some owners sell car models that aren't made anymore. If you try to replace parts on these models, then you will need to look for aftermarket parts. Since many dealerships specialize in only certain makes and certain models, you have a better chance of getting original equipment manufacturer (OEM) parts. OEM parts will look better on your car. Plus, since your dealership will be familiar with OEM parts, it will be easier for them to install these parts on your car should you need repairs.
You Can Do a Trade-In With Your Current Car
If you have a vehicle that you want to get rid of before getting your used car, you may be able to do a trade-in. Even if your car has a lot of mileage or is old, many dealerships will still be willing to buy a vehicle. If they won't do a trade-in, they may be willing to buy parts or refer you to scrap yard. Since you are trading in your vehicle, the money you make on the trade-in can be put towards the used car purchase.
You Get Small Perks
Many dealerships offer discounts and incentives when you buy a vehicle. Incentives can include things like gas vouchers, free oil changes, free detailing, free wash/wax, etc.
If you are looking to get a vehicle, don't go through private sellers. Consider the benefits of used car dealerships and contact one in your local area today.