Preowned Cars Vs New Cars
Should you buy used cars or new ones? The moment a new car leaves the dealership it’s value falls. That makes the question a lot simpler to answer. Because autos depreciate, make the purchase only when it will lose the least value after you own it. That of course combines with the concern over the state when a car needs less maintenance. The slightly used car is about the best for both concerns. The value has already dropped from new car state. Someone else got robbed by that decrease. The car is still in good condition, often still under warranty, so that it won’t have need for constant and costly repairs like an older model car needs.
Late model used cars are available from a variety of sources. Car lots have a lot of traded in cars. The dealers want to sell those cars. eBay has a whole division dedicated to used cars, while specialty companies such as Carmax list thousands of them. There are car auctions in every city. Dealers auction cars, as do cities when police confiscate them from criminals.
Kelly Blue Book is the place to look for used car prices. Categories include make, model, year and condition from poor to excellent. Sale by an individual or dealer is also shown. Dealers have overhead private sellers don’t have so that is important.
What about financing a discount used car? The better idea is to save money to make a cash purchase. No matter how low of an interest rate or how low the monthly payments, nothing helps the monthly budget like not having to make any car payment. It’s nice to own a top of the line auto. Remember, however, that even simpler models get from point a to point b. That can even mean a less stressful life. People with more expensive cars worry more about theft, accidents and wear. Not that used car owners like to drive junk, but a little ding or dent means less on a simpler model.
Sure cars are a status symbol, but wealth isn’t based on what you spend. Net worth comes from saving. There are people living hand to mouth even though they earn a lot of money. Saving money on a used car can be one step to being wealthy.
