Advantages of Buying a Used Car Who doesn’t love their cars? We probably even love them too much that we judge others and are judged by others based on what we drive. We put a lot of emphasis on driving only the best that we’re willing to buy anything and pay for value that drops like a bag of rocks. If you want to go penniless and remain penniless, go ahead and buy that new car at the dealership without thinking. If you plan to be wise about it, better. Let’s begin from the top. For the majority, a car is the second priciest item they’ll own in their lifetime (next to a house). Considering you’ll probably pay tens of thousands of dollars to own and maintain an automobile over the years, it is important to be careful when buying and deciding how to buy one.
Lessons Learned About Vehicles
If you have debt and zero emergency fund, think twice before buying a car. It’s wise to straighten up up your money mess first. While you’re trying to get out of debt, be content driving a beater car. It’s easy to upgrade once you are debt-free.
Getting Down To Basics with Sales
With a new car, 60% to 70% of the value will be lost within the first four years of purchase; if you avoid new automobiles, you will be able to save you tons just on depreciation. Buying a $30,000 ride and selling it four years later for $13,000 isn’t smart. Technically, buying a new car is only safe if you have a net worth not lower than $1 million. First rule of buying a car is, always pay in cash. As much as possible, you’d like to stay away from car loan payments. It’s not unusual to make a $400 payment for a car. If you can do that, then you can also save the same amount monthly. If you can do that for 10 months, you can buy a used car for $4,000 while you go debt/interest-free. While we’re on the topic of payments, don’t fall for the car lease trap. Aside from surprise charges, fees and mileage, it’s the most expensive way to own an automobile. After saving the cash and picking out a set of wheels, keep yourself from getting emotionally attached to it. Be objective and walk away. It’s just an automobile, and if the seller thinks you are desperate to buy, you won’t get a nice deal. To ensure that the car is in good condition, bring your mechanic – or anyone who is an expert – with you. Take your time inspecting the vehicle and be silent. Allow the seller to bring up the price. All of these things may sound very basic, which is just what they are. Purchasing a car doesn’t have to be complex. Buy used in cash. You can only thank yourself later.