| New vs used. Which car is right for you? Consider | | | | sales tax. |
| the following. | | | | As with everything else there are a few downsides |
| Owning a brand new car is exciting. But financially | | | | to buying a used car. There are greater chances for |
| speaking, it makes more sense to buy a used car. As | | | | costly unwarranted repairs. You may very soon have |
| soon as you drive a new car off the lot, it loses a | | | | to do major maintenance on your car, including |
| great portion of its value. This is because your car is | | | | replacing tires, battery, brakes, muffler, and perhaps |
| no longer "new". | | | | even the transmission. |
| New cars lose about 40% of their value within 3 | | | | A used car is usually less reliable. You don't know |
| years, then depreciation starts to slow down. Why | | | | exactly what you're getting into and how the |
| not buy a used car and allow someone else to take | | | | previous owner treated the car. However, every |
| that depreciation hit? | | | | situation is different and some used models may |
| The previous owner will have absorbed the steepest | | | | actually be far more reliable than some new ones. |
| part of the depreciation cycle. At that point the | | | | If you can pay cash, go the new car way. Enjoy the |
| costs of owning and operating the car will be | | | | feeling of knowing you're the original owner of a new |
| reduced. The money you save on depreciation will | | | | car in mint condition. Nothing can replace that feeling. |
| surely go a long way. | | | | Otherwise do not hang your hat higher than you can |
| Another benefit of buying used is lower cost. By | | | | reach. Practice financial prudence. Save your money |
| buying used you pay less. You will also save on | | | | and comfort yourself knowing that one day you will |
| financing costs, insurance premiums, registration and | | | | be able to afford that dream car. One day when |
| licensing fees. You don't have to worry about paying | | | | money is no object. |