Diamanta Jasmine. Used Car. November 11th , 2020.
Many people do not consider that they have a choice when buying an automobile they need for transportation. They assume since they usually buy new shoes and new underwear that a car is something that should be bought new also. In our culture if you don’t have enough money saved to buy something now, there are always plenty of hawkers of loans and credit to lend you the money to do so. Is this always the wisest thing to do? What if you owned a 2003 Toyota Camry, sold it this year for $6,000, and took the money and made a down payment on a new $24,000 car? You would have to finance $18,000. According to Yahoo, the current national average for a car loan is 5.75 percent, and government statistics inform us that the average car loan is for a period of more than four years. Let us say you finance the car for six years. Your monthly payment would be about $320 a month. Six years later you would have paid $23,000 out of pocket for the car and you will have only $6,000 to show for it if you took very good care of the car and are able to get that price when you resell it. That means no accidents, no eating or drinking in the car, and getting the oil changed and other maintenance taken care of on schedule, and keeping the mileage low to average. In other words, you will need to have a bit of luck and be very conscientious in taking care of your car if you want to get a good resale value on it six years later.
What do you need to remember when buying a car? Remember, it’s an investment, so make sure it is the right one. Most people tend to go for the look, the glitz, the engine and other such features. It is recommended to make an informed decision by taking all following aspects into account: Car History ==> Buying a used car can be difficult, and somewhat of a gamble. You can put the odds in your favor by knowing all you can know about the car’s history. This includes number of previous owners, if the car was involved in any accidents, any previous mechanical failures and its maintenance history. Ensure that car Odometer has not been tampered with ==> Simply look at the dashboards to see for marks, or if it is loose. This generally is a sign of tampering. Also look for service stickers under the hood or inside of the car. They will contain latest readings, and you can match them against the current read.
If you are buying a car with cash then this is a really easy step to follow, just only spend what you can afford. So now you have decided on the car you are after and the budget you have to spend now you just need to locate that car in that budget, it sounds simple but this is by far one of the hardest bits. I personally look for low mileage cars as they still will have a lot of life in them, I rather have an older lower mileage car than a newer higher mileage car as I just feel that the older car would have had an easier life. Where do you look when you are after a used car? Well I would first cruel through your local news papers and see whether any of you local car dealers have the car you are after then if they do go round and organise a test drive. When you are sure that the car is the car for you then walk away and try and find that car on the internet at the lowest price you can.
Question: Why are you selling the car? The answer to this question might not impact your decision, but it is a good idea to have the answer. Lets look at it this way, would you rather buy a car from someone who decided to upgrade to get more room for their kids or someone who says they wanted something better? Many sellers tend to answer this question quickly and on impulse so you should get an honest answer. Question: Can I come look at the car and take it for a test drive? If you are asking all of these questions over the phone or via email, you will want to ask this important question. It is always recommended that you take a vehicle for a test drive before deciding to buy. Just because a car looks good, it doesn’t necessarily mean it runs good or will be comfortable for you to drive. Run in the other direction if a seller keeps making excuses. The car might not run or they might not even have a car to sell (common with online scammers).
You might think that’s still a bit old. Not all old cars are that bad. Within the last 10 years or so regulations have been put in place to control emissions and get better gas millage. Some car companies like Toyota or Honda have been doing this all along regardless of laws. For example I drive a year 2000 honda civic. Its not the pinnacle of ’green’ technology but think on this I get around 25-30mpg. This car is now 9 years old. Many cars today can just match that, and some can’t even reach that high of millage. It also has always passed California smog check and emission checks. California is notorious for its strict emission control standards. So if it can pass those tests it’s a good, clean running car. And since the car is quite a few years old it’s not going to be all that expensive, especially if its found at an auction where you say how much you’re willing to buy it for.
Now pretend that you keep your 2003 Toyota Camry or that you are the buyer this year that bought it for $6,000. You have no car payments, so if you get laid off from your job or have other temporary financial setbacks, there is no stress from the possibility of the car being taken by the repo man. Granted it’s a used car so we might need a little extra for repairs, let’s say $100 a month. You still need to get the oil changed and regular maintenance done on the car like the new car, but you don’t need to sweat over a few coffee spills on the upholstery or scratches and dings on the paint since you know the car will be worth little when you are ready to get rid of it anyway. Where will you be in six years if you sock away the extra $220 dollars a month in a rather lousy investment CD with a rate of one percent? You will have $16,000 in savings. That is surely plenty of money to buy another nicer and newer car.
So who is the smarter consumer? Who is on their way to being able to always buy nice cars? Just from one or two times abstaining from borrowing money to buy a new car a consumer can have the money in the bank to buy all their cars new, if they so desire. Also, after a little time of driving an asset they own free and clear, consumers may find they like the way that feels, even if the car does not look showroom perfect. They say there is an air freshener you can buy for that new car smell. Also bear in mind that our calculations did not take into account the amount you can save every year on ad valorum taxes and insurance for less-than-new cars.
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