A used car, also called pre-owned car is one that passed one or more owners in the past. There are different sources available from where one can purchase a used car. They include rental car companies, leasing companies, auctioneers, dealers, private sellers and banks and finance companies. Lets take a brief look at the various sources available
Rental car companies
Rental car companies sell cars that are one year old or less. All records of maintenance and repairs are available for cars. The warranty might be limited. The age is less, but the mileage of the car is definitely high. The wear and tear of the car is also high, but it depends on the driver and the traveling.
In leasing companies, the ownership is only with the company. The car buyer has to pay monthly or periodical installments to the company. Once the leasing period is completed, the company will offer a final settlement to own the car. Buyers have the choice to either accept the settlement or continue leasing. Leasing companies provide both new and used cars. In case of used cars, the installment will be less than the new cars.
Auto auctions are the best place to find inexpensive vehicles. But in this case, there are some limitations. Warranties may not be applicable for the auctioned cars because they are generally a little older. The working condition of the car is also not known. It is difficult to evaluate by looking at the car whether it is worth buying or not. Bidding the reasonable price is difficult in many times without knowing the value of the car.
Dealers have direct contact with the manufacturer, or its sales subsidiary. Dealers have dealership agreement with the manufacturer. Some of the dealers sell only new cars and others sell both new and used cars. Some authorized dealers will give warranties for the certified used cars. The main advantage of buying used cars from dealers is, the cars are in a working condition.
Private sellers give ads in newspapers, magazines, classifieds and Internet portals. Price might be lower than the dealers’. But the warranty and the repair services might not be available.
Banks and finance companies
Some people buy cars by applying a loan from a bank or finance company. If they fail to repay the installments, the banks or financed institutions reclaim the car and will get their remaining balance by auctioning the car. Banks and finance companies give loans to buy a used car.
Used cars are available at different sources along with different varieties. It is sensible to research, and based on your requirements, you make the final decision of purchasing the car.