Get More Car For Your Money
Buying a new car is so expensive. Are you going to be able to afford what you need and want or are you going to settle for less or make large payments? There’s a way to get more car for your money and spend less. You can buy a good used car all you need is a used car checklist.
Buy a good used car. Cars depreciate (lose value) at about 10% a year. You can save thousands of dollars buying a gently used car.
Wouldn’t it be great to buy a car that you really want for about half price? You can do it.
Read my article how to pick the right used car and save big money
If you are interested in the red flags that tell you not to buy a specific used car. read my article red flags for used vehicles.
Why Buy A Used Car
Buying a good used car can save you thousands of dollars, and it can provide you with years of reliable transportation. (for clarification when I say used car, I mean a car that’s four years or older.) The largest amount of deprecation has already taken place, and many used cars are still under warranty.
Buying a good used car you will get more car for your money and save big money.
Deprecation
According to Carfax a new car typically depreciates 10% the first month you drive it off the lot and loses as much as 20% in value the first year of ownership. The value of the car will continue to fall at about 10% a year for the next 4 years.
At the end of five years the car retains 40% of it’s original value.
As you can see buying a new car isn’t a good financial decision. But because people do buy new cars it gives you the opportunity to buy a used car.
This Is How You Can Get More Car For Your Money
We are going to assume; the car hasn’t changed except for normal wear and tear. It’s still in good shape and runs well.
Just a few years ago this car cost a certain amount of money. Today the value of this car is a lot less. So, you can purchase this car for a lot less money. If you compare the price of a new car to the price of a similar used car there is a large price difference. The used car has less value than the new car.
The two cars are similar in size and amenities you can purchase the used car for much less saving you money.
You now have more car for your money.
Before You Run Out And Buy A Used Car
Not all used cars are created equal. It’s important to know you are buying a used car, and it may have some problems. Check the car over and look for problem areas you won’t be able to live with.
I know a lot of people won’t buy a car with rust on it, but I will because I can fix it depending on where the rust is.
Personally, a larger problem to me is the Air conditioning it needs to work and work correctly.
The point of all of this is you need to know what to look for and if you find something wrong with the car are you willing to live with it, fix it, or maybe you should move on the next car.
I wrote a post explaining what to look for. It’s a used car checklist. You should read it before you go looking for a used car just so you know what to look for.
More Reasons To Buy A Used Car
Many used cars are still under warranty
It’s a good idea to ask and find out if there’s a warranty with the car.
Used car insurance is usually cheaper than new car insurance
Usually if you’re making payments on a car the lending company requires you to have full coverage. If you pay cash for your car new or used car it’s up to you.
Frequently asked questions
Q. How do you feel about 3rd party extended warranties
A. In my opinion they offer more than they deliver. If you get an extended warranty read it carefully and understand what the terms and conditions are.
Q. Is rust a bad thing
A. It really depends on you. If you can repair it yourself than no.
Q. Have you ever bought a used car
A. Yes, all of my cars except one have been used.
Q. How can you tell if a car has been in a flood
A. This is a hard question, but usually if you look under the floor mats and there’s rust or a mildew odder the vehicle has been filled with water.
Q. Should I have a mechanic look at the car before I buy it
A. A mechanic may catch something you missed. So, I would say yes. However, if you use my checklist you will be able to prequalify the car to been seen by a mechanic and save a lot of money and time.
Q. Is it best to buy from a dealer or person?
A. I have bought from both my preference is to buy from a dealer because they are always there. If you buy from a person than you may be waiting for someone to get home from work.
Q. Is CarMax worth it?
A. absolutely they provide a lot of very important information.