The used car business is huge. In 2018, Americans bough almost 40 million used cars. In the same year, dealers managed to sell just 17.3 million new vehicles. In other words, people prefer pre-owned cars. It’s not just about the money. Even people who can afford a brand new car sometimes prefer to buy used. Why? Because these people don’t have to worry about depreciation. They don’t lose 30% of the value of the car in just 2 years. The truth is that even if you rarely drive the car, it still loses value over time. Some people just want to buy a car that has been pre-owned and that will continue working for another four to five years. They can then sell the vehicle without losing much of its value.
The Truth About Used Car Sales
Not only are used car sales on the rise, they are rising very rapidly. The digital age has brought many changes in this sector. Now it is easier than ever to find a used car on the Internet. One can view dozens of photos of the vehicle and can gain access to its entire history. This doesn’t mean that you should buy the car off the Internet, of course. It is always safer to see the vehicle in person and to take it for a test drive.
Yes, but why are there so many car dealers near me? Because used car sales have skyrocketed in recent years, many people saw an opportunity. Let’s face it: used car dealerships are selling most of the cars. It’s not uncommon for a large used car dealership to sell more than 200 cars in one month. As you can imagine, the profits are substantial. This is precisely why you see so many car dealers in your area. However, keep in mind that not all car dealerships are trustworthy and reliable. Before you rush to the nearest dealer, do your homework and gather information about the company online. You will surely find plenty of reviews about the company to help you decide whether or not it can be trusted.
Why Would You Buy a Used Vehicle?
So, why should you buy a used car? Buying a new car definitely has its advantages, the biggest being its warranty. But did you know that you can get warranty for a used car as well? You just need to find a Certified Pre-Owned vehicle. CPO cars have been inspected, serviced and refurbished in most cases. They are late model cars with relatively few miles on the odometer. And yes, they come with a warranty for 12 or 24 months.
However, the main reason why so many people choose to buy second hand cars is their price. In just 4 years, a car loses almost 50% of its value. Of course, low mileage cars will be a bit more expensive. You also save good money on insurance premiums and even on the annual registration in some states. Another nice perk is that you don’t take de depreciation hit. You can use the vehicle for a couple years and then sell it without losing a lot of money.
Please note, however, that most used cars don’t come with a warranty. You may experience problems with the vehicle if it has not been serviced properly by the previous owner. However, you can minimize this risk by obtaining the service history of the vehicle. Also, don’t forget to change the oil and filters as soon as you purchase the vehicle.
Looking for a Trustworthy Dealer?
Are all used car dealers near me trustworthy? The sad truth is that not all dealers can be trusted. You need to research the company you wish to buy the car from. You can easily do this online though. Keep in mind that the first thing an angry customer does in most cases is to go online and leave a negative review about the company. Take a look at the reviews received by each used car dealership in your area and decide which one is the most reliable.
As a side note, you should keep in mind that even if a dealer is fair and reliable, the pre-owned vehicle may have some hidden mechanical or electrical issues. In many cases, the dealer doesn’t know about them. It’s a good idea to get the car to a shop ASAP and have it tested by a team of experts.