Deciding to buy a used, rather than new, sports car comes with its own advantages and disadvantages. People will usually save money on initial costs, but may end up paying more due to maintenance fees and insurance premiums. Although a buyer may avoid suffering depreciation, he or she may not be able to obtain competitive financing on a used sports car.
Advantage: Initial Costs
The most common reason people decide to buy a used sports car, rather than a new model is to save money on initial costs. A used sports automobile will undoubtedly have a lower price tag than a new sports vehicle. For example a brand new Porsche Boxster S can cost up to $58,000. Although the car looks great, it may be beyond most people’s budget. However, a buyer may be able to find a used Porsche 944 for as low as $3,400 available on the market.
Advantage: Lower Insurance Premiums
Sports cars usually have higher insurance premiums than other types of vehicles, such as a small family car. However, drivers can minimize this by purchasing a used sports car instead of a brand new one. Insurance premiums tend to be lower for older vehicles. Before making the final decision to purchase a vehicle, find out available insurance rates in order to obtain the best deal possible.
The minute a sports car leaves the lot, it begins to lose value. Most of the car’s depreciation occurs within the first year. Therefore, the person who buys the car brand new suffers the lost. However, this allows a buyer to obtain that car used for a great price without being affected financially by the car’s depreciating value. Although the car’s value continues to decline, the first owner would have absorbed most of the depreciation.
One of the main disadvantages of buying a used sports car is required repair work. Usually used sports vehicles will encounter more problems and require more maintenance. While, on the other hand, new cars may include free scheduled maintenance as part of the manufacturer’s warranty. Have a mechanic inspect the potential purchase to determine what future repairs may be needed before making a final decision to buy.
Disadvantage: Limited Warranty
A used car’s warranty may not last as long as a new car’s typical warranty. Automobile manufacturers usually offer at least a five-year warranty when purchasing a new vehicle. Although dealerships commonly offer warranties on used sports automobile, the warranties usually only last for a few months before they expire. This leaves owners liable to potential maintenance requirements which could cost a significant amount of money.
Buyers may be at a disadvantage when it comes to financing options for a used sports automobile. Usually lenders will require higher monthly payments, because they do not want the loan to be extended for more than four or five years. Additionally, when a person decides to buy used he or she misses out on the standard zero-percent financing deals offered by dealerships for purchasing a new sports car.
It is critical to understand all of the potential costs and benefits of purchasing a used car. Do as much research as possible to obtain the best deal possible. Check with multiple insurance companies for the best rates. Consult a professional mechanic to avoid unexpected maintenance fees. With the proper precautions, buying a used sports vehicle can save money and also look good.
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