Drivers are just discovering the 'rule of three' tip for smarter used car shopping. A recent survey shows that drivers now see used cars as more reliable than ever before.
But, there's a special formula that second-hand car shoppers need to follow to get this level of satisfaction out of their purchase. The J.D. Power survey looked at used cars bought in 2020.
This is important because you can save a lot of money if you buy cars from this year while also getting good value in areas like maintenance costs. New cars lose about 40 to 50 per cent of their value on average after their first three years on the road, reports the Express.
So if you buy a car that is older than that it can help you get the best deal. However you do need to be aware that many vehicles start to see more service problems when a car gets close to and reaches 100,000 miles, says RealCarTips.
Cars often have these problems after they've driven 100,000 miles:
Engine wear.
Transmission issues.
Suspension and steering defects.
Brake wear.
Electrical and cooling problems.
Lower exhaust system performance.
Fuel systems issues.
There also a potential further issue If you're borrowing money to buy a used car that's three years old, lenders usually charge more interest for cars with 100,000 or more miles. However that means you can still enjoy the benefits of the most reliable 2020 used cars listed in J. D. Power's survey if they are four years old.
A three-year-old second-hand car sells for an average price of £12,550 and loses about 25 per cent of its value during its next three years of being owned. If you're concerned about getting a car that's three to four years old and no longer has a full warranty, you can buy an extended warranty.
Extended warranties usually cover up to 100,000 miles. In a recent report by J. D. Power, Land Rover was ranked as the least reliable for used models, while Lexus got the top spot.
