When it is time to buy a vehicle, the first question you have to ask yourself is if you will purchase a new car or if you would like a used vehicle. Each type of purchase has its benefits and drawbacks. Knowing what these are will help you make an informed decision.
Purchasing A New Vehicle
The largest benefit to purchasing a new car is the fact that it is new. You do not have to worry about the normal wear and tear that is experienced by used cars. The vehicles have a manufacturer’s warranty for a limited time based on years or mileage, and many have additional perks from the dealership like free oil changes or roadside assistance.
If you plan on keeping your car for several years, a new car may be in your best interest. You can drive the vehicle long enough to overcome the depreciation factor and resell it later. It is important to understand that new cars depreciate from the minute they drive off of the lot. Some of these vehicles can depreciate by 50 percent in their first year.
Purchasing A Used Vehicle
Used cars are priced better than new cars, and this is an advantage. For many people, buying a used car allows them to purchase a vehicle with more features or has a higher luxury rating than if they purchased it new. Since most of the vehicle’s depreciation occurred with the original owner, you can purchase these vehicles for a fair price.
Purchasing a certified preowned vehicle is almost as good as purchasing a new vehicle. The certification that these vehicles have stated that the car meets the manufacturer’s standards or has had any necessary repairs to meet those standards. These vehicles are trustworthy and reliable.
There are a few drawbacks of purchasing a used vehicle. First, not all car lots offer certified preowned vehicles. If the vehicle does not say that it has been certified, you should never assume that it has. Without that certification, you have the potential of purchasing a “lemon.”
The next issue with purchasing a used vehicle is that it can be harder to get financing for these cars. Lenders prefer to lend against newer vehicles because they feel they will last longer, protecting their loans. Loans for used vehicles often have higher interest rates because of this. Some dealers will also mark up these loans as a service fee because they had to use a third-party lender to finance the vehicle.
The final issue with a used vehicle is not knowing the history of the car. Any car can be made to look amazing. However, if it was in an accident, in a fire or flood, or problems with the title, you may be in for some serious headaches down the road.
VINsmart – The Best Tool For Purchasing Used Vehicles
If you are purchasing a non-certified used car, you can still protect yourself from unnecessary hardships by having a VINsmart report made for your considering vehicle. The VINsmart report will answer all your questions about the vehicle’s history and give you peace of mind in knowing what you are purchasing. VINsmart uses the VIN on the vehicle and traces its history to when it was sold as new.
The VINsmart report will look at all documentation that has been reported on the vehicle. It will document repairs and maintenance that has been performed, if the car has ever been reported stolen, and if the vehicle has been in an accident. If it has been in an accident, the report will show if a certified mechanic made repairs or totaled the car.
The VINsmart report will show if the title on the vehicle is a salvage title. This means that the car was deemed unfit for the insurance company’s road use and sent to the scrap yard. This can occur if the vehicle has been in a bad accident or been subjected to flooding or fire. People can later purchase and restore these vehicles, but they have to have a salvage title attached so that the buyer will know.
The report will also review the vehicle’s title to make sure that it is free and clear. You do not want to buy a vehicle that has a lien against it from the previous owner.
Always Remember This When Purchasing A Used Car
Before you purchase a used vehicle, if it has not been manufacturer certified, you want to have that vehicle checked by a mechanic, and you want a VINsmart history report. This is the best way to protect yourself from purchasing a used vehicle that will later become a problem for you because of needed repairs or title issues. When you have the right information, you can make an informed decision about purchasing any vehicle.