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Buying New vs. Used Cars
by: Mantius Cazaubon
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
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.
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