When it comes to buying used cars you need to know one thing, what are your financial options?

Some people have enough money to cover a down payment and subsequent monthly payments. Others have enough saved for a down payment, but can not afford the monthly payments or insurance premiums so they have to pay for the car outright. Typically this means they have to buy a much older car. The problem with older cars is that they are not always dependable. Yes they are much less, expensive but they also can be a few miles away from needing major repairs.

There is also the option to purchase new cars but the value there is really not a whole lot better. Even though the vehicles are new, they can be drastically overpriced, which is a major issue for anyone to deal with. Even if you get a great deal on a new car, you are still looking at regular maintenance costs, and you have to be careful with the engine for the first few thousand miles.

Used cars that are certified and sold by a dealer are usually the best deal out there and there are plenty of reasons why. First of all, certified used cars are relatively new. Someone probably bought the vehicle new, drove it for a few years, and either wanted to trade it in for another new car or could no longer make the payments on it. The mileage is probably still relatively low and the car is likely to be in good or great condition. Second of all, let’s say that a new car is ten percent better than a used one that’s only a few years old. Then why does it cost forty to seventy percent more? The reason is because again, new cars are considerably overpriced in the grand scheme of things, no matter what kind of deal you get on it.

Having providers or reliable used cars is important because many people today cannot afford brand new cars. They are expensive and budgeting for them is out of the question for many people. However, the chances of being able to afford used cars are a lot better, especially if you finance them. Plus don’t forget that the insurance for a financed used car is much less than the insurance for a financed brand new car. So you are getting a car that is nearly as good in every way imaginable as a new one, but you get to save thousands of dollars on it, that’s not a bad deal.

In fact, if you do the math, even resale value is completely different. Let’s say you want a 2011 car and there is a model of that same car available from 2008. The 2011 car costs $35,000 and the 2008 model costs $23,000. That is a difference of $12,000 for only three years of wear and tear. Now the real difference would be in the resale value. In five years the 2011 model might be for sale for around $19,000 while the 2008 might be for sale around $15,000. That means if you buy the older car today you are saving $12,000 and in five years when you sell it you are only getting about $4,000 less. So all together you get a great car and you’ll save $8,000 if you sell it in five years. You can’t beat that deal.