Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer "new".
New cars lose about 40% of their value within 3 years, then depreciation starts to slow down. Why not buy a used car and allow someone else to take that depreciation hit?
The previous owner will have absorbed the steepest part of the depreciation cycle. At that point the costs of owning and operating the car will be reduced. The money you save on depreciation will surely go a long way.
Another benefit of buying used is lower cost. By buying used you pay less. You will also save on financing costs, insurance premiums, registration and licensing fees. You don't have to worry about paying sales tax.
As with everything else there are a few downsides to buying a used car. There are greater chances for costly unwarranted repairs. You may very soon have to do major maintenance on your car, including replacing tires, battery, brakes, muffler, and perhaps even the transmission.
A used car is usually less reliable. You don't know exactly what you're getting into and how the previous owner treated the car. However, every situation is different and some used models may actually be far more reliable than some new ones.
If you can pay cash, go the new car way. Enjoy the feeling of knowing you're 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 financial prudence. Save your money and comfort yourself knowing that one day you will be able to afford that dream car. One day when money is no object.
Resources:
If you want more tips on car buying, you should try Apmart's Car Buying Tips from Cheap Cars for Sale. If you want to buy a used car, try to search for one at Apmart's Cheap Used Cars for Sale. Especially you should look at Cheap Used Cars Under $1000 and Cheap Used Cars Under $500. You often can get a functional car for that cheap. Don't forget to look at the Most Popular Cars to get an idea of what other people are buying. In case you don't want used car I suggest having a look at the Cheap New Cars.
About the Author:
Mantius Cazaubon offers a guide geared towards helping you find the best deals on reliable parts and accessories for your automobile at http://www.toyota-parts-guide.com Visit http://www.toyota-parts-guide.com for auto parts savings.About this site:
Open Tips website is developed using SEO Web Design by Binh Nguyen to provide free tips and advices from well known experts.What's next?
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