Buying a used car in many ways can be a big risk. Are you buying someone else's headache? How can you tell if the previous owner(s) properly maintained the vehicle? What if it was in an accident?

Although there are risks involved with a pre-owned car, it must be pointed out that from a financial standpoint, a buyer most likely will come out ahead of the games, when compared to buying a new car.

When buying new, even with the best possible deals available, the purchaser is acquiring at least 20% negative equity right at the outset. Buying pre-owned, a smart consumer can step into a positive equity scenario, if they do their homework and hold out for the right deal.

Keeping the Right Priorities

When purchasing a pre-owned car, it is important to keep ones priorities involving the purchase. Too many people are swayed by the momentary excitement of driving a nicer car than what they currently own, and end up making regrettable decisions. Ask yourself some tough questions like:

a) Considering the mileage and condition of the vehicle, is this a good value by objective standards? Always look at Kelly Blue Book and NADA values for a vehicle, to make sure that you acquisition is in line with, and preferably lower than the average retail for that vehicle.

b) Is the down payment and monthly payment in a comfortable range for my financial situation? Far too many people burden themselves with 'too much car' and end up either defaulting on the loan, (resulting in a repossession), being chronically late, or end up having to change their lifestyle dramatically to be able to keep their car on the road. Keep in mind that the car you purchase, based on your driving habits, should be reasonably expected to last longer than your note.

c) What are the realistic costs of owning the car? Some cars have a higher expected costs of repairs, particularly German cars. Japanese cars, like Honda and Toyota, are reputed to have the lowest cost of repairs, due to their outstanding reliability. Keep in mind the increase or decrease in the cost of fuel for your new car. An individual who is used to driving an SUV who trades it in for a Prius, for example, if they drive a typical distance each month may save a couple of hundred dollars just in fuel!

d) Lastly, what type of warranty or coverage are you getting with the pre-owned vehicle? Factory Certified vehicles typically come with a 100,000 mile power train warranty. Moreover, Certified vehicles by definition have to have a clean Carfax report.

If you are looking for certain pre-owned vehicle Contact Us and tell us what you are looking for. We will find the best value for you.