Do you know what makes Today’s used cars so Expensive?
Buying used cars for sale is usually considered as a good option for car finders who are not willing to spend larger amounts of money for their vehicle purchases. This is also a good alternative for buyers who are not capable of handling higher auto financing premiums. However, buying a used car has its own downsides. Due to this, it has proven that used cars are expensive due to the following reasons.
The number of parts that Require Regular Maintenance or Replacing
It is well known that today’s used vehicles come with a lot more utilities and gadgets. The only problem with having more gadgets and utilities is that means eventually they will need repairing. Since most used cars do not come with a warranty, you will have to pay for these repairs or replacements with your own money. You may be thinking to yourself, well there could not be that many utilities on today’s used cars. Well, to help you better understand exactly what I am talking about prepared the following list for you of the utilities that can come on just one name brand of a used car today the Mercedes Benz black engine 4cyl.
CD single disc cruise system, lights, heated seats, keyless entry, alloy wheels , CD single player,air conditioning, cd single disc changer, keyless entry mp3 power player, new conditioning alloy wheels, cd reader, single disc, cruise control, leather seats, navigation system, satellite radio, cruise control, fog lights, new wheels, cd single disc charger, FM air conditioning alloy, adjustable fog lights, heated seats.
This is just one example of all the utilities that can come on only one vehicle. For a deeper dive into why used cars are so expensive in the united states today, watch the following video.
Unless you buy a certified pre-owned vehicle, the average secondhand ride will not be covered by the manufacturer’s warranty. As a result, you must pay for any and all repairs out of your own pocket. This can cost a pretty penny if you get stuck with the dreaded lemon. On the bright side, you may be able to purchase extended warranty coverage from a third-party provider.
Used Cars Depreciate Fast
Most car experts will not encourage buyers to purchase used cars since these vehicles depreciate fast. Based on recent calculations, the majority of the brand new car models lose almost 47 percent of their real value in the first three years. After the next three years, the vehicle will further depreciate by 18 percent and based on this, you will most likely have a hard time selling the used car that you have purchased when needed. What’s worse is that you might end up earning zero profit when you decide to sell this.
Lower Fuel Efficiency
The more we drive our automobiles, the less efficient they inevitably become. Normal wear and tear often take the biggest toll on their engines. In time, minor mechanical issues combined with dirty components will end up costing you more at the pump. Although the problem is seldom one of you will notice, most used cars lose a few miles of fuel efficiency per gallon over their lifetime.
You might end up buying a car with a poor Air Conditioning system
Another disadvantage of buying a used car is the greater possibility that you might end up buying a vehicle with a poor running air conditioning system. Since the car was used by the previous owner for a few years before you purchased it, some of the vehicle’s component might have been damaged and before you know it you already paid the entire amount. Due to this, you will be incurring higher maintenance and repair expenses instead of earning a lot of savings from buying a vehicle at a cheaper price.
In addition to this, the vehicle will certainly need more repairs compared to a brand new one because it was previously used by its first owner and the broken or defective components of the vehicle would most likely break down by the time you were able to purchase it.
Higher Financing Fees
As a general rule, it is less expensive to borrow money to pay for a new car than a pre-owned one. That said, the interest rates on these loans have come down quite a bit in recent years, making it more affordable than ever to get an auto loan for a secondhand model.
If you really want to know if a particular dealer or seller is offering a legitimate car sale, you can ask or their car insurance policy. If they cannot give a written document about their car insurance, then you must not deal with this car dealer. Some people opt for car loans to acquire a car without any risk. This is an option that everyone can go for especially to people who do not have cash on hand especially now that time is really stiff.
For more information about the possible problems with used cars, trucks, SUVs, and even minivans, take some time and read the following related topics.