Buying a used car is a great way to save money if you really need a car or even if you’re just buying them for sport. Although like any other second-hand items, buying old cars comes with risks.

But don’t let that scare you. Buying used cars definitely has more pros than just the money you’d be saving from it.

Either you’re buying your first car or you want to upgrade, or maybe even downgrade, this guide is for you!

First, let’s talk about the pros and cons of buying a used car to make you aware of the good and the bad of it so you may figure out as early as now if second-hand cars are really ideal for you.

Pros of Buying a Used Car

Cost savings

Of course, the biggest pro of getting a used car is the cost savings that you will get from it.

Obviously, used cars cost way less than buying that brand new Honda Civic. Do we still have to discuss this further?

Less Depreciation Cost

Usually, cars depreciate fast, dropping to about 50% of its value in the first 3 years of ownership. By buying a three-year-old car, you are actually letting the previous owner absorb the car’s cost of depreciation.

If you decide that you want to sell your used car after a year of owning it, the depreciation won’t be as much. So, a big win!

Most are still in great condition

If you’re buying from a reputable dealer or a trusted private seller, then you can guarantee that most of these cars are still in very great condition. Some even comparable to brand new!

More high-end options to choose from

If you want a higher-end car, say, for example, a Mustang or a fancy Lexus, but you currently can’t afford a brand new one, buying second-hand definitely opens up those options for you. Of course, they’re still going to be expensive, but at least, a lot less expensive now.

Quicker loan pay-off

Since used cars are generally cheaper, the car loans that come with them are also usually shorter. So if you’re not buying cash, you’re going to be bothered by monthly payments for a shorter amount of time!

Cons of Buying a Used Car

Reliability of the car

The reliability of used cars is sometimes questionable because you don’t know where these cars have been through.

To make sure that you’re buying a car that’s bound to be reliable for the next couple of years, make sure that you inspect the car thoroughly before buying.

Private party purchase comes with extra risks

If you’re buying from a private party, they might not offer you any free maintenance (at least for the first year and the first 5k-10k miles) or warranties for anything that goes wrong. This will lead to more costs that you surely want to avoid.

So unless you’re buying from someone that you really trust, these are the extra risks that you may encounter.

Lesser colour, style, etc. options

While you have more cars to choose from when buying used cars, it’s harder to pick your colour or style of preference when there’s only 1 or 2 options available in your price range or at the moment.

If these preferences don’t really matter to you, then it’s no big deal. But for some who really values aesthetics, this is a bummer, as you’re gonna have to pay for a new paint job or pay more to get close to the desired style that you originally had in mind.

Might have higher interest rates

Used cars often have higher interest rates which won’t be ideal if you’re looking to avail a longer car loan.

Types of Used Cars that You Can Buy

Private Used Car

These cars are sold by private parties. So people who are getting a new car or don’t want their old cars will sell the cars privately. Usually private used cars won’t come with warranty so you will need to check the car and engine etc to make sure it wont fall apart next month.

Dealer Used Car

A lot of dealers will buy cars off people and then sell it themselves. You pay a bit higher but most dealers will have a warranty on the engine. If you want peace of mind then it’s worth paying the extra.