Used Cars Make Dollars & Sense for Your Budget

What should you buy a used car or a new one? The second a new car is driven out of the dealership its value falls. So that makes the question much easier. Since a car is an asset that is depreciating, meaning typically cars lose value over time, the best economic decision is to buy the car when it will lose less of its value. Balance that out along with when the car won't need much repair work. The slightly used vehicle is just about the best for both concerns. The cars value has already dropped from when it was a new car. The previous owner absorbed that loss. It's likely the car won't need constant repair work, and the warranty is probably still valid.

Late model used cars are available from a various sources. Consumers who buy or lease a new car can trade in their old car to the dealer. For those vehicles dealerships are looking for new owners. Carmax, eBay motors and companies like them have seemly unlimited number of used cars available for viewing. Car auctions are taking place in most every city. Cars in auctions are from the police, that have been taken from criminals, or are even used rental vehicles.

If you want to really know your cars value Kelly Blue Book is the place to look for the value of your used car. The categories include the make, the model, the year and the condition listed from poor to excellent. Also it breaks down the values between dealership sales and personal sales. Because dealers have to pay overhead costs that private individuals don't have to, that is a distinction that is shown.

Are you are considering financing a used car as an option? Instead think about saving up your pennies so you can make a cash purchase. That will save you more money in the long run and you’ll be glad because of it. Of course, people can't help but like the fancy models. Maybe consider something simpler with less bells and whistles. That will mean a less stressful life. Expensive cars cause their owners to worry more about theft, vandalism and wear. Scratches don't mean to much on less expensive cars.

Your wealth isn't determined on what you buy. It's about what you save and overall your net worth. Saving turns rich people into richer people. Saving money on a used car is one step in the right direction to being wealthy.