Used Cars

Are used cars or new cars better? New cars begin depreciating the second you sign the papers. The answer is a lot easier with that information. Buy the car after it has taken the biggest value hit. That of course combines with the concern over the state when a car needs less maintenance. Those states converge in the slightly used car. The value has already dropped from new car state. Someone else absorbed that loss. 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.

Many sources provide these slightly used cars. People who buy or lease new cars trade in their old ones to the dealer. Those cars than have to be sold. 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. Auctions include cars from the police, taken from criminals, or used rental vehicles.

The most trusted source for used car prices is Kelly Blue Book. Cars are shown by year, model, then with prices shown for various conditions. Sale by an individual or dealer is also shown. Dealers have overhead private sellers don't have so that is important.

Have you considered financing? The better idea is to save money to make a cash purchase. That saves money in the long run. Sure, people like the fancy models. But bells and whistles can cost a lot of money. Buying a car like that used can not only help the budget, but creates less stress. Theft, wear and accidents are bigger worries for people with fancy cars. Not that used car owners like to drive junk, but a little ding or dent means less on a simpler model.

Wealth isn't made by spending, even on a car. It's based on what you save and on net worth. Saving turns rich people rich. Good used cars help the budget.



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