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3: Analyze Your Circumstances

Pros and Cons of Buying Used

Scales of justiceBuying a used car can be risky. There are a lot of unknowns, but they can be offset by lower pricing. Here are some of the pros and cons of buying used:

  • Buying a used car will cost you less upfront than a new car.
  • Used cars bought through a manufacturer's certified pre-owned program are subject to inspection, making the manufacturer responsible for certain repairs.
  • Insurance premiums will be lower than those for a new car.
  • You are the owner (after paying off the car loan).
  • If you buy a lemon — a car that looks fine on the outside, but turns out to have hidden issues — you can run up repair bills quickly.
  • Buying a used car from a private party (individual) will not include warranties or service programs.
  • Your interest rate for financing may be higher than buying a new model.
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