Used Toyota cars: Bigger risk or bigger savings?



Michelle Krebs, a writer for Cars.com, says that the current market has an abundance of used cars for sale. Because the supply is higher than the demand currently, prices are dropping. In many places, used Toyota selections are plentiful ? eco-conscious buyers can even find hybrid vehicles like the Toyota Prius and Camry at reduced rates. For many buyers, used cars or trucks are synonymous with a great selection at the lowest price possible.

Used cars, however, can be a gamble. Some information about a used car or truck ? such as where the previous owner drove it, how he or she treated the vehicle, and whether the vehicle was purchased used in the first place ? might not be available to the next buyer. Worse, some car dealerships rehab cars that are not working well or that have serious malfunctions that might show up later. These types of used vehicles are called ?lemons,? and no vehicle brand ? Toyota, Subaru, or Dodge ? is without its lemons.

Fortunately, reputable Toyota dealerships have been toughening up their requirements about which used vehicles they will or won't accept. Some used cars include factory transferable warranties that can be carried from one owner to the next. More importantly, a good dealership will always perform thorough inspections and test drives on any used vehicles slated to be sold on its lot. Still other dealers offer ?certified pre-owned programs,? which involve more stringent requirements for used cars that can be sold.

Finally, used cars and trucks can be a better value. Even when outfitted with special features, they always cost less than their factory-new counterparts. Remember: A new car loses value the minute it is driven off the dealership lot.

New Toyota cars: More money ? fewer problems?

When you buy a Toyota car or truck new, you are almost guaranteed a few benefits. First, your new vehicle should be relatively maintenance free ? especially for the first several years of ownership. The vehicle warranty will often cover routine maintenance like oil changes and tire rotations, as well as the cost of part repairs or replacements. Warranties can even cover related vehicle services, like roadside assistance. .

You might have more information at your disposal about new Toyota vehicle prices, too. The price of a used car or truck is heavily dependent upon its condition and mileage ? two factors that are often completely independent of vehicle make and model. Conversely, pricing information about new vehicles is readily available ? in newspapers, on Toyota dealer Web sites, or on Internet car pricing resources ? and prices are fairly standard. If you are trying to negotiate a fair price on a new car, you are in a better position to ask for the lowest price available, because unlike used cars, mileage and wear and tear are not factors.

The biggest downside to buying a Toyota new is this: a new vehicle is a larger investment, and will depreciate the minute you begin driving it. Vehicle depreciation is exponential, as demonstrated by the mathematical model of exponential decay, V = Voert . This model demonstrates that over a 10-year period, a vehicle will lose much of its value; for example, a $20,000 new car is worth just over three thousand dollars in 10 years.

Ultimately, consumers should chose the Toyota model and vehicle condition suitable for their individual lifestyles, budgets, and needs. The best way to shop for a vehicle is to make a budget; draw up a list of what you are looking for in a car or truck, and then become as informed as possible about all of your options.