What To Buy Used
By Justin Gardner | Related entries in MoneyA little financial advice from MSN Money concerning personal finances and what you should hold off on buying because it could just save you a LOT of money. The list includes: Books, CDs, DVDs, videos, little kids’ toys, jewelry, sports equipment, timeshares, cars, software and games, office furniture and hand tools.
And they even break down the reasons and some exceptions to these rules. This one is for cars, one purchase I’m sure we’ve all made in the past couple years.
The average new car loses 12.2% of its value in the first year, according to Edmunds.com; on a $20,000 car, that’s $2,440, or more than $200 a month. Some cars depreciate even faster, depending on demand, incentives offered and other factors.Why not let someone else take that hit? Not only will you be able to save money (or buy more car), but you’ll pay less for insurance. Cars are better-built and last longer than ever before, which means you’re less likely to get a lemon. Companies like CarFax allow you to trace a car’s history. Many late-model used cars are still under warranty, and a trusted mechanic can give your potential purchase the once-over to spot any problems. (For more, see “How to save $10,000 on your next car.�)
Exception: You can pay cash and you really, really want that new-car smell.
Being the owner of a 1997 used car, I can tell you that I got a heck of a deal and a fantastic car that was at 1/8th of the original price. Sure, this was seven years after the fact, but it’s a heck of a ride.
In any event, read the whole article about helpful hints on saving money by buying used.
This entry was posted on Tuesday, October 18th, 2005 and is filed under Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
October 19th, 2005 at 10:26 am
Indeed. Now this is my own personal bias speaking here, but I am generally convinced that no car is actually worth more than $10K. Period. Granted this limits my options, but I know what I’m getting, I don’t have to worry about anyone stealing it, and as long as it continues to do what it’s supposed to and can find parts when it doesn’t, I’m fine with it. I can also see the analogy to books and other media. Incidentally, I bought my ‘88 model year car in 1999. It still does what it’s supposed to.