Feb 26 2013
Owning a brand new car is exciting. But financially speaking, it is better to buy a used car. As soon as you drive a new car off the lot, it loses much of its value. That’s because your car is no longer “new”. New cars lose about 40% of their value to less than 3 years, then depreciation starts to slow. Why not buy a used and allow someone else to take the depreciation hit? The previous owner has absorbed the largest portion of the depreciation cycle. At that time the cost of owning and operating the car will be reduced. The money you save on depreciation will certainly go a long way.
Another advantage of buying used is lower cost. By buying used less you pay. You will also save on financing costs, premiums, registration and license fees. You do not have to worry about paying sales tax. As with any other there are some drawbacks to buying a used vehicle. There are more chances of costly repairs unjustified. You May very soon to make major maintenance of your car, including the replacement of , batteries, brakes, muffler, and perhaps even the transmission.
A used is generally less reliable. You do not know exactly what you start and how the former owner treated the car. However, each situation is different and some models used may actually be much more reliable than some new ones. If you can pay in cash, visit the new car. Enjoy the feeling of knowing that you are the original owner of a new car in mint condition. Nothing can replace that feeling. Otherwise, do not hang your hat higher than you can reach. Practice prudence. Save your money and you comfort knowing that one day you’ll be able to afford that dream car. One day, when money is no object.
Tags: brand, car, cash, comfort, condition, cost, cycle, Depreciation, financing, license, maintenance, money, muffler, prudence, registration, replacement, tax, transmission, Value, vehicle
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