Preowned Cars Vs New Cars

Should you buy used cars or new ones?  New cars begin depreciating the second you sign the papers.  The answer is a lot easier with that information.  Since a car is a depreciating asset, meaning in general cars lose value with time,  the best money decision is to purchase the car when it will tend to lose less value.  Balance that with the time when the car won’t need as much repair work.  Those states converge in the slightly used car.  The value has already dropped from new car state.  Someone else got robbed by that decrease.  The auto is likely still under warranty and isn’t in a state of needing constant work.

Late model used cars are available from a variety of sources.  Car lots have a lot of traded in cars.  Those vehicles are looking for new owners.  eBay has a whole division dedicated to used cars, while specialty companies such as Carmax list thousands of them.  In America there are car auctions every weekend.  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.  That does make a difference because dealers have overhead that private sellers do not have.

Have you thought about the financing for a discounted used car?  Think about saving up the pennies and making a cash purchase.  No matter how low the monthly payments or interest rate, paying cash is better.  Sure, people like the fancy models.  But consider something a little simpler with a few less bells and whistles.  That can even mean a less stressful life.  Theft, wear and accidents are bigger worries for people with fancy cars.  A scratch doesn’t mean as much on a less expensive car. 

Sure cars are a status symbol, but wealth isn’t based on what you spend.  It’s based on what you save and on net worth.  Most rich people get that way by saving money.  Good used cars help the budget.