There are as many pros and cons to buy a used car in Puslinch as there are buying new. In some situations, one far outweighs the other, so perhaps it’s a good time to outline significant advantages of buying used.
Our Puslinch auto loan team outlines why they think buying used may be the right thing to do.
Cars are now designed to last
A decade or so ago, cars only seemed to last 5-10 years or 100,000 miles or so. There were always exceptions but it seemed like they never lasted very long.
That’s no longer true. Cars are more reliable, manufacturing is more focused on quality and the car industry is now so familiar that parts are precision engineered and should fail much less.
Smaller auto loans
Used cars are cheaper than new so will require a smaller auto loan to pay for it. This has obvious benefits like cheaper monthly repayments but also offers higher chances of qualifying, less need for a huge down payment, no co-signer and a wider pool of lenders to choose from.
The lower your credit score, the larger the advantage of a smaller auto loan!
The majority of a vehicle’s depreciation takes place in the first three years. After that, it levels off to a much more sustainable level. Buying a used car means letting someone else pay for the depreciation and then picking the car up at anything up to half the cost.
Depreciation can also cause you to go upside down on your auto loan. Where the amount of the loan is higher than the value of the car. Some people are really uncomfortable with that so buying used can be the alternative.
No first model blues
Buying used avoids those first model blues. You know when you buy a brand new model that’s only been released only to find it full of teething troubles and recalls? That’s first model blues.
With any luck, the car you buy will have had all its recalls, all its fixes and its foibles identified and remedied. If not, workshops have had a couple of years to become familiar with them so remedies should be cheap!
The used car market is now huge
The used car market is bigger than ever. Used vehicles are no longer viewed as second-class or only for people on lower incomes. They are now widely recognized as being an excellent way to buy a quality car while spending less money.
You now have more choice of models, trims, options, colours and prices than ever before. You also have more dealerships and marketplaces to buy used cars than ever before.
It’s a great time to buy a used car in Puslinch if choice is your priority!
If you want to use your Puslinch auto loan to buy a used car, you can. Contact one of our expert team for help and information on anything to do with car finance.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!