A poor credit rating can impact one’s ability to buy a new vehicle on a payment plan. In addition, a poor credit rating will usually limit the types of vehicle someone is able to buy. Most car dealerships will only offer used vehicles to people with a poor credit rating. However, there are many advantages to buying a used vehicle over a new one.
A new vehicle may lose 30% of its value in the first year of ownership. Many car manufacturers and dealerships place a high markup on new vehicles. As soon as a new car is driven off the dealership lot, it has dropped in value. In addition, new vehicles are often untested, with unknown reliability ratings. It’s possible for a new vehicle to be a lemon, or have other inherent problems.
When buying a cheap car on credit, it’s essential to look for a vehicle with as few miles as possible. It’s better to buy an older vehicle with fewer miles, rather than a new vehicle with 150,000 on the odometer. A vehicle’s expected lifetime is based on wear and tear. A new vehicle that has been heavily driven will break down before an older vehicle that has been kept in storage.
When looking for a cheap car on credit, look for brands that are extremely reliable. Brands such as Mazda and Toyota are known for long lasting quality. These vehicles can often be driven for 300,000 miles before any serious problems emerge.
It’s also important to check a vehicle’s history before any purchase decision. Some used vehicles may have been involved in theft, resulting in extensive damage. This damage may have been repaired, but the structural integrity of a vehicle has been reduced. In addition, a vehicle’s history can reveal any odometer fraud, flood damage, or other forms of hidden damage.