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Why Buying a Used Car During a Recession is a Good Idea
When the economy is looking scarier and scarier, prices of just about everything are rising, people are afraid of losing their jobs and more - buying a used car is a great idea. If you're in need of a dependable vehicle and you're considering purchasing a new car, you might be interested to know why buying a used car during a recession is a good idea instead. Here is some more information regarding that very thing.
You Can Save More Money
The obvious benefit to buying a used car during a recession is that you can save more money. While brand new cars start to depreciate as soon as you sign the papers confirming ownership, used cars have pretty much already taken the big depreciation hit.
So, you're purchasing a used car that costs less money, but that will not depreciate as fast as a new car. You can also use the extra money that you saved for something else - such as sticking it in savings for the future or something similar. Purchasing a used vehicle is a great way to save more money.
On top of saving money on the overall price of the vehicle, you will also save money in states that require you to have insurance on your vehicle. For instance, in most states, when you purchase a brand new vehicle - you also have to purchase full coverage insurance. In a time when money is tight anyway, that can be an extra chunk of money you just can't afford to lose.
If you purchase a used vehicle, however, you can usually just buy liability. This is a personal choice, of course - but this is another way that you can really save money when you purchase a used vehicle rather than a new one.
Smaller Period for Payments
Purchasing a used vehicle does not bind you to payments for as long as a new vehicle does. For instance, with most new vehicles, you will pay for 5 to 10 years or even longer. Most people purchase used vehicles outright or they will have a smaller payment period -such as 2 to 4 years. While this may not seem like a huge benefit now, you will be thankful for that as those 2 years pass!
Avoid Added Fees
When you purchase a used vehicle, you avoid the added fees that most dealerships tack on to their cars. Even the individual car salesman can tack on a fee if you're willing to pay for it. You can bet that in today's economic times, those fees are becoming pricier and pricier. When you purchase a used vehicle, you don't have to worry about those fees that get tacked on to new cars.
There are many great reasons to purchase a used car during a recession and by using the information above, you can really see the advantages of it.
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Used Cars by Owner
One of the more common practices for people looking to purchase a vehicle is to trade in their existing car to reduce the final cost of the vehicle they are purchasing. If you are trading your current car in to a used auto dealer you may want to consider selling the vehicle yourself instead of trading it in. People selling used cars by owner find that they usually get more from a private sale than they would if they had traded their vehicle in to a local used car dealer. One of the reasons for this increase in value for a private party used car is that the dealership will only give you the blue book resale value for your vehicle while a private buyer will take into account any recent repairs or replacements made to the vehicle that increase the value.
There are many different ways you can sell your used car and many different ways that people looking to buy can find used cars by owner sales. One of the more efficient, and inexpensive, ways to advertise your car for sale is to use the classifieds either in your local newspaper or on the internet. There are many very popular internet sites that offer free classified advertising that can get you excellent results.
What To Include In Your Advertising
In this day and age of rapidly fluctuating gas prices, it is a very good idea to include the gas mileage of the car you are selling especially if that mileage is particularly excellent. Whether you are selling a Dodge or a Mitsubishi it is important to include the condition of the vehicle in your listing as well. Always include the manufacturer of the vehicle as some people prefer specific brands.
Luxury Cars Need Different Information
If you are looking to sell a luxury vehicle, then you need to include more information in your advertising than you would if you were selling a four wheel drive. For luxury cars it is not unusual for buyers to take the used cars by owner route and purchase from someone that is selling as a private individual especially if it is readily apparent that the owner takes good care of their vehicles.
People buying used luxury cars are usually well educated on what to look for when they are spending that kind of money on a vehicle and a well preserved luxury car can exceed its blue book value by a wide margin and still be quite a value. So if you are looking to possibly trade in your luxury vehicle to a used car dealer on your next purchase you may want to reconsider and attempt to sell your vehicle on your own to get the full value out of your used vehicle as opposed to a deflated retail value.
Ian Pennington is an accomplished niche website developer and author.
To learn more about Used Cars by Owner, please visit Vintage Cars Now for current articles and discussions.
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