If you’re buying used cars while your friends are driving brand-new vehicles, you might feel envious. Buying used cars strategically, on the other hand, can be a wise financial decision. Instead of envying your friends’ new SUVs, make them jealous of your healthy bank account. Examine how you can expand your financial resources by purchasing used rather than new.
Assume you’ve recently purchased a new car. You’ve made a small down payment and agreed to monthly payments for your vehicle. The value of your new vehicle drops by about one-third the moment you drive it off the lot.
Consider this scenario in more detail if you are using a lot of money to buy a new car than a used car, it’s more preferable to buy the one used because you will save a lot of money and the car will last longer.
Being “upside-down” on your car loan may not appear to be a big deal at first. However, if you are in an accident and the insurance company only gives you the car’s value, you will be left owing several thousand dollars. Buying new cars instead of used cars in san diego can put you at risk of significant financial loss in many cases.
Increase Your Savings
Your dealer has a brand new car and an older version of the same car in good condition for sale.
You could save more money on lower car insurance premiums because you’d probably pay off the car sooner.
You would not only be able to own your car much sooner, but you would also be able to save that monthly payment and put it toward something else. These savings could help you with significant expenses, such as purchasing a new home or paying for your children’s college, or they could be used to buy something enjoyable, such as a boat or a luxury vacation. You could also put the money toward your retirement or save it and use it to buy your next car with cash.
Many people say they buy new cars because they are concerned that used cars will have mechanical issues. Allow yourself some peace of mind by having your mechanic inspect a used vehicle before you buy it. Another option is to go with a certified pre-owned vehicle from your local dealer. When you can reap so many financial benefits from buying used cars, your neighbor’s slick new ride may not seem quite so slippery after all.