A used car is a vehicle that has been previously owned or leased. Used cars are sold through both dealers and private sellers. Some consumers purchase them for their use, while others buy them to resell them at a profit.
Car depreciation is the loss in value of automobiles as they age or are driven. The depreciation rate varies significantly based on the overall automotive market, the car’s initial price point, mechanical complexity, mileage, etc. A variety of factors affect how much you can expect your used car to depreciate upon purchase. Newer vehicles have more expensive parts than older ones which add to their value and make repairs more expensive. To make up for this increased expense, they could be sold for a higher price once it comes time to sell. Vehicles known to have problems may not fetch as much money when they are resold.
Consumer Reports – used car buying guide gives insight into the problem of depreciation and how to get around it while purchasing a second-hand vehicle.
The value of a used car starts to depreciate as soon as it is driven off the dealer lot or shortly after purchase if bought from a private seller. While this may cause some potential buyers to wonder why they should even bother with used cars instead of just going straight to the dealership and picking up a new one, there are many benefits associated with buying used which might make this option more appealing than it seems at first glance:
While the initial cost of a used honda Fresno is lower than that of a new one, it usually comes with significantly less warranty coverage.
This means to get the same warranty protection you would enjoy when buying a new vehicle, you would almost always have to purchase an extended warranty from the dealer or private seller.
A used car also costs considerably less than a new one, but this savings can be offset by having similar issues such as low resale value and high maintenance costs due to repairs not covered under warranty. However, some known problems for certain vehicles when they were brand new may no longer be present in later models.
