Second Hand Car Versus New Car. Whats the right cars for you? Think about the following.
Owning a brand new car is excellent and it gives one a feeling of success. But financially speaking, it makes more sense to buy a second hand car or used car. The minute you put your ass in the new car and drive off the lot, it loses a great part of its value usually a couple of grand. This is because your car is new no more.
New cars lose about 45% of their value within 3 years, If it is a luxury car mabey a bit more then depreciation starts to slow down slightly.So why not buy a pre owned car and let someone else to take that depreciation hit?
The previous owner will have absorbed the biggest part of the depreciation. 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 a used car is lower cost of purchase. By buying a used car you pay less. You will also save on financing costs, insurance premiums, registration and licensing fees.Because someone else has paid these fees already and you are only paying what the car is worth now.
As with everything else there are a few downsides to buying a used car. There are more chances for costly repairs. You may have to do major repair work on your car, including replacing tires, battery, brakes, muffler, and perhaps even the transmission all of these would be guaranteed on a new car.
A second hand car is usually less reliable. You dont know exactly what youre getting into and how the last owner treated the car until you buy the car. However, all situations are different and some used cars 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 youre the original owner of a new car in mint condition. Nothing can replace that feeling of success or the smell of a new car.
Otherwise do not bite off more than you can chew. Be cute and Practice financial prudence. Save your money and content yourself knowing that one day you will be able to afford and buy that dream car. Some day when money is no object.
Me I will always go for the used car from a reputable car dealer, but im a bit of a skin flint and would hate the thoughts of giving all that money to the banks, insurance companies and government.
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