Buy a used car, save in the short run
With the recent news that new car sales have dropped dramatically - Toyota and Ford both posted a 30% drop - this next tip may sound old hat. But there are more reasons than ever to buy a used car these days, if you are buying at all.
The trick is to buy the right kind of used car, according to a recent issue of Consumer Reports magazine. "With relatively low mileage, modern safety and convenience features, and usually a much lower price than similar new vehicles, those used cars are in the sweet spot of auto deals," the story says.
In some cases, buying a three-year-old car can save you enough money over the first five years of ownership to cover your gas bill for those entire five years! That's true for a 2005 Toyota Camry with a V6 engine (actually, you still come out $2,500 ahead) and nearly true for a 2005 Ford Focus (buying used covers four years of gas).
With SUV sales and values plummeting because of high gas prices, you could save $25,500...
...- or about seven years of gas - if you buy a used Chevy Tahoe instead of a new one.
Consumer Reports' analysis shows you can save roughly 19% buying a one-year-old set of wheels, 27% on a two-year-old and 32% on a three-year-old. While crunching the numbers, Consumer Reports took into account depreciation, fuel usage, insurance, interest on financing, maintenance, repairs and tax.
If you are concerned about buying a problem car, make sure the car you are buying has been well maintained by asking to look at maintenance records. In most cases "savings on depreciation, tax and interest far outweigh the increased maintenance and repair costs - as long as you buy a relatively reliable bar."
Take along a friend for a second opinion when you test out a used car. Bringing my car buff friend Antony while searching for a Mini Cooper paid off for me. He checked the brake pads for usage, knew what to look for under the hood, and notice a cracked rear brake light.
Big deal, I thought, I'll get it fixed. But then he pointed out that there was sand inside the light. It had been broken that long. He also discovered the car's brake had to be replaced at 25,000 miles, which tells you something about how the previous owner drove it. I kept looking and eventually found a British lady who was really uptight about her car, which meant she took it into the shop for every little thing.
Buy a used car these days and you don't even have to give up that new-car smell. They sell it in a bottle!
2 Comments
Leave a comment
About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
My Facebook Profile
It's still way too early to go into the used or new car market, unless you absolutely need a car.
SUV's aren't going anywhere for a long time, dealerships are closing down every single day unable to move inventory, and as the credit crisis starts to unravel it will be harder and harder to get any assistance for people with car loans.
wait as long as you can, because car AND home prices have still a lot more room to drop, because clearly nobody thinks prices right now are a bargain otherwise people would be buying....until prices are low enough for people to step in, don't think of putting skin in the game now!
Your post will definitely help those who cannot decide which one to buy.
Rose.