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Posts Tagged ‘preowned cars’

Are preowned cars or new cars better?  The moment a new car leaves the dealership it’s value falls.  The answer is a lot easier with that information.  Because autos depreciate, make the purchase only when it will lose the least value after you own it.  That of course combines with the concern over the state when a car needs less maintenance.  Those are most balanced in the late model used car.  The largest decline in value has already happened.  That loss went to the original owner.  The auto is likely still under warranty and isn’t in a state of needing constant work.

There are many places to look for late model used cars.  Dealerships take in trade-ins from customers who purchase or lease new vehicles.  The dealers want to sell those cars.  Companies like Carmax specialize in used automobiles, while eBay has an entire subsection dedicated to car auctions, mostly for used vehicles.  There are car auctions in every city.  Dealers auction cars, as do cities when police confiscate them from criminals. 

Kelly Blue Book is a valuable resource to determine the relative fair price of a used car.  Cars are shown by year, model, then with prices shown for various conditions.  Sale by an individual or dealer is also shown.  Dealers have overhead private sellers don’t have so that is important.

What about financing a discount used car?  Think about saving up the pennies and making a cash purchase.  No matter how low the monthly payments or interest rate, paying cash is better.  It’s nice to own a top of the line auto.  But bells and whistles can cost a lot of money.  That can even mean a less stressful life.  People who own the luxury cars worry more about them.  A scratch doesn’t mean as much on a less expensive car. 

Wealth isn’t made by spending, even on a car.  Net worth comes from saving.  Most rich people get that way by saving money.  Good used cars are a way to save.