There definitely can be many benefits to buying used over a new but used cars offer possible risks that need to be reduced. Many unethical people exist that want to scam people out of their money when they least expect it. Some resort to turning back mileage counters or failed to inform the buyer of major mechanical problems. However, most people are fairly ethical. Anyway, it will be up to you to protect yourself by doing your homework. Knowing what you want in a vehicle, doing a little advanced research, being committed to purchasing the car you need and want, and basically keeping your wits about you, there should be no reason for you having a successful experience with purchasing a used car. Some necessary steps will need to be taken in order to do this.
First step: Is purchasing a car, new or used, the right option for you?
Except for a house, and automobile will likely be the most expensive item you'll buy in your lifetime. However, there exists a huge difference between purchasing a house and an automobile. The value of a house usually appreciates while the value of a car depreciates. So cars will lose their value while your home will usually gain in value.
So do you really need an automobile? Is it possible you could use public transportation? Could you hold off on the purchase? Remember that the cost of purchasing a car will not be the only cost involved. You will have to think of paying out money for insurance, gas, and continued maintenance which involves replacing the oil, occasional mechanical fixes, car washes, etc. It all adds up. Do you really need the car or do you simply want it. Make sure it's a requirement.
Step Two: Find out if Owning a Car Is Affordable For Your Current Financial Status
We talked about the cost of owning a car in the previous step, but let's look at it in a little more detail.
First, simply look at the price of a car you can afford. In every situation, purchasing a car with cash will be best but not usually possible for most people. However if it is possible, you will save a ton of money in interest. Otherwise, look at how much you can afford in a down payment and monthly payments over time.
Second, discover what kind of insurance premiums you'll have to pay. Remember that a higher deductible will lower your premiums. Attempt to get various quotes for the car you would like to purchase.
Third, think about how much you'll have to pay out and guess every month. At one time, $100 a month might have been possible. However, with the recent ups and downs of gas prices, you never know how much you'll have to pay out in gas. Try to make a very conservative estimate assuming gas prices go much higher.
Fourth, you'll have to know some that maintenance and repairs will cost you a decent amount of money over time. You might estimate that these costs will possibly be anywhere from $30-$100 for every 3000 miles. This does not include major problems that might occur. Those major problems could be reduced if you do your homework before you purchase a car by getting it checked out.