Is it even worth spending the money?
Here’s the first question you should be asking yourself if you’re trying to decide whether to look at new or used cars: do you need a car at all? A car is a pretty big expense anyway, but there are many potential and future costs that make cars much more expensive than they seem. You’ll be buying gas all the time, and gas is not cheap nor will it get cheaper. Insurance is expensive, repairs always come at the worst time, and you’ll have to pay for maintenance. But if you are determined to buy a car, focus on used cars. Here’s why:
* New Cars Lose Value Immediately. Your brand new sparkly car, that is just the color your want with the precise interior you prefer, costs a lot more than a used car. Oh but it’s so nice and shiny and new and it’s all yours! As soon as you drive it off the lot, the value plummets. The debt for that new car is also all yours. And there’s no way you could sell it and re-pay your debt.
* High Quality Used Cars Are Plentiful. Believe it or not, there are a lot of people out there who buy a new car and sell it a few years later just so they can own a new car again. These are the people with money to burn and nothing better to do with their time. Why do they do this? Maybe they’re convinced by all the advertisements they see everywhere that owning a new car will make their life better. Too bad it’s not true. But when you get to buy that used car that’s only had one owner, no accidents, and is practically as good as new, your life is made better.
* Save Money. This one is a no brainer and it’s the most obvious point – but it needs to be made. Used cars are cheaper. A lot cheaper. Think of the things you could do with the money you saved by buying used instead of new!
* The Environment. There is nothing environmentally friendly about driving a car, not even a hybrid. But if you’re going to buy a car, buying a new car has a much greater negative effect on the environment than buying a used car. Just in case that matters to you.
Think about it. What else could you spend money on? Have a look at some used cars and decide whether or not it’s worth it for you to buy a car at all.