Ready to buy the car or truck you’ve been eyeing for months? What should it be, new or used? That’s the question of ten thousand dollars. A new car or truck is nice, but it will depreciate dramatically overnight. Drive it home and start her the next morning, and you’ve just lost thousands of dollars. What is depreciation? Simply put, the value of an asset is lost over time. Current data shows that you lose 20% to 25% in depreciation and that is right during the first year of ownership. The price of a new deductible car is thousands more than a fully loaded used (or pre-owned as they are now called) vehicle of the same model. You can expect to save a thousand dollars or more by choosing very carefully to buy a used car or truck. When properly evaluated, a used car or truck can deliver transportation that will last a long time.
When buying a used car, consider the following
- The previous owner will absorb most of the depreciation.
- Insurance premiums will be cheaper.
- Used cars are more reliable vehicles than before.
- Many are still covered by the original manufacturer’s warranty.
- Manufacturer or dealer of certified used cars are available with extended warranties.
- The VIN number allows you to track the history of the vehicle.
- Private sellers / owners can make the process easier and less stressful.
Where should I buy my used car?
- New car dealers will have the newer model used cars still available under the original manufacturer’s warranty and certified used or pre-owned vehicles with extended warranties available.
- Private owners usually want cars that are slightly older in age but which in most cases have been well maintained and have a lower mileage than those available at commercial lots.
- Used car dealers have the older vehicles with higher mileage that require extreme control and a mechanic you can trust. Pay attention to “Buy Here, Pay Here” companies.
The answer to the $ 10,000 question when buying a vehicle is simple. Buying a carefully selected used car or truck can literally save you thousands of dollars as opposed to buying a new car. When considering depreciation, insurance savings and the total number of monthly payments, a used car or truck will keep money in your pocket. Original manufactures warranties, certified, before owned vehicles with extended warranties and low mileage make buying a used car or truck more attractive than ever.