Buying New vs. Used Cars
by Mantius Cazaubon
New vs used. Which car is right for you? Consider the following.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..
New vs used. Which car is right for you? Consider the following.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..
posted by John at 12:02 PM
13 Comments:
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I believe used cars are best choice in comparison to the new cars.If a person has to buy a luxury car and he doesn't have that much budget,he can buy an used luxury car.The best part of this business is a luxury car owner always take care of their vehicle.So,there are minimum chances of getting a junk in place of a car.
Used Cars
Very good point Mantius! If a car would lose 40% of its value in three years, it also means that it would be 40% or more cheaper by then, which is a great point because if a buyer would be lucky and the previous owner took good care of the car, he would still be able to enjoy a good performance from it. Plus the fact that it would start to depreciate less at that time.
Cody Strub
You have some very good arguments in here. The used car industry has actually been growing a lot for the past five years. The only thing that slowed it down was when car manufacturers reduced production due to the economic downfall. Other than that, buying used cars have proven to be a very wise decision. Buyers don’t have to worry as much because there are always pre-buying inspections available to get an extensive idea of the car before sealing the deal.
NICOLE VICKERS
Thanks for sharing the difference of buying a new and used car.
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Thanks for sharing this! It is so true how much the economy has affected the automobile industry almost in every way. It is very clear that there are less used cars in the market right now. It has to be because of the economy. My grandpa is working as a used car dealer akron in ohio and is struggling pretty bad. Do you think it will improve? I sure hope so.
i prefer to use the brand new one rather than using the old one..if we buy new one we can really assure that it has a good quality
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You can add part of your articles on http://alotz.com
This is good promotion for you.Thanks
Always buy used cars considering your budget, and not exceeding budget, remembering main reason of buying cars, and having trustfull buying guide.
Better yet, find cars that are parted out and work some deals. ... covers that go on doors, I'll get for free and sell on eBay for $10-$15 after fees
Used Cars . New Cars , Buy New & Used Cars , Sell Car , Car Sales
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