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Quote from Used Cars.com :
Fluid leaks – Many people might overlook a small drop of oil or some other fluid here and there, but these are sure signs of potential future problems that will need to be addressed. A car that is running like it was designed to should not be leaking anything.
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.
Depending on how long you have been driving, you will probably have had at least one car you have wanted to sell, and if you have ever tried to sell a car, you will certainly understand the minefield that is the used car market. There are many reasons why you may think to yourself ’I want to sell my car’; perhaps you want to buy a newer, or better, car; perhaps you have developed an environmental conscience and wish to ride a bike, or take public transport; or perhaps you simply need to raise a little capital in a short space of time, and think that selling your car would be the perfect way to do so. Selling a used car can take time and money. If selling privately, there are the associated costs of advertising, which can reach in excess of £150 if the car is advertised with a coloured photo. There is also the time involved, it is unlikely that the first person who views the car will take it, and so, more often than not, multiple viewings are necessary, these take up valuable free time and can be a great inconvenience. Alternatively, if selling with a dealership, it is unlikely that you will receive a good price for your 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.
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