Pat Goss' Tips & Expert Advice
Advantages Of Buying A Used Car
If you've been looking for a new car you've probably felt 'sticker shock' while visiting new car showrooms. New cars, even lower-end models, now cost about $15,000. Plus, if you have to finance that amount of money over 36 or more months, you will add the cost of interest charges to the overall price you have to pay to own a new car. You may find through research that owning a new car simply isn't in your budget.
But, now many cars are of a higher quality and come with extended warranties, so buying a used car — if you do proper research — can be a good investment and free up room in your monthly budget to do other fun activities or buy something you otherwise couldn't afford. There are some other advantages of buying a used car including:
- Higher overall value: In the first few years of a new car's life, its value declines rather rapidly. This is called depreciation. After this initial stage, a new car does not lose as much of its original value as quickly. So, if you buy a used car, you'll lose less of its value to depreciation.
- Buying more car for your money: Luxury accessories and other add-on features offered at the dealership can add up fast when buying a new car. If you are willing to buy a used car, you might be able to afford more of what you want in terms of extras. Plus, luxuries like leather seats and sporty accessories on a new car, add more and more to the amount you are paying in interest.
- Knowing a car's history: It's hard to go a week without hearing some kind of recall information about defective cars on the news. Even if you buy a new car, you may find that the manufacturer was not aware of glitches and other defects until that model has been on the road for awhile. If you accurately research a car's history, you'll be able to determine which model is likely to give you less trouble in the long run.
