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.
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.
Back To Articles Page
|
