Why Buying a Used Car Is Better
Who doesn’t love cars? We probably even love them too much that we judge others and are judged by others based on what we drive. We place great emphasis on driving nothing less than the best automobile that we’ll gladly buy something and pay for value that falls like a bag of rocks.
If you are searching for a way to become penniless and remain that way, stop thinking and just grab that new car at the dealership. If you want to use your head, better.
Let’s start from the top. For the majority, a car is the second priciest item they’ll own in their lifetime (next to a house). Because you’ll likely spend tens of thousands of dollars to purchase and maintain a vehicle through the years, you have to be careful about what you buy and how you buy it.
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If you have debt and zero emergency fund, think twice before buying a car. It’s always wise to fix your financial mess first. While you’re trying to get out of debt, be content driving a beater car. The moment you are debt-free is the moment you can upgrade.
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A new car decreases in value by 60% to 70% within the first four years; if you stay away from new automobiles, you will save you a lot just on depreciation. Buying a $30,000 ride and selling it four years later for $13,000 isn’t smart. Technically speaking, only those who have net worth of at least $1 million should buy new cars.
First rule of buying a car is, always pay in cash. Forget about car loan payments. It’s not unusual to make a $400 payment for a car. If that’s possible for, then saving the same amount monthly can also be done. Keep $400 for 10 months and you can get a $4,000 used car with zero debt and interest.
While we’re on the topic of payments, don’t fall for the car lease trap. After fees, mileage, fees and surprise charges, it’s the priciest way to own a vehicle.
After you’ve saved the cash and selected a set of wheels you really like, do not allow yourself to be emotionally attached to it. Stay objective walk away. It’s just a car, and if the seller thinks you’re desperate to buy, they won’t cut you a deal.
Bring your mechanic (or anyone you know is an expert) to check the car’s condition. Take your time inspecting the vehicle and be silent. The seller should come down on the price.
All of this may sound quite basic, which is exactly what it is. Purchasing a car doesn’t have to be complex. Buy used and use cash. You will surely thank yourself in the future.