It is a fact of life that many people need adequate forms of transportation to commute to and from their jobs. If you are like most people, your car is one of the largest expenses you will have next to your house. In all the research I’ve done on personal finance, how you go about purchasing an automobile can have a large impact on your credit and financial picture. If you go about purchasing a car the wrong way, it can put you in a financial strain which will be difficult to recover from.
Can You Afford It?
As of this writing, the average American makes about $33,000 per year. Most brand new cars cost well over $12,000. This means that the cost of a brand new automobile makes up a large percentage of the annual income made by most Americans each year. Most people cannot afford to pay $14,000 up front for a brand new car, so many choose to get car loans. When you take into consideration the interest that must be paid, it can take as long as 7 years for the average worker to pay off this loan. At the same time, the car will depreciate in value, and will be worth very little once it is paid off compared to its original value.
Job Security
It is also important to remember that most people don’t keep their jobs for seven years. Many people, especially those that are young adults, may work multiple jobs within a single year. This shows a lack of stability, and it is easy to get into a financial strain if the economy suddenly experiences a downturn and jobs become harder to find. It is for this reason that you should avoid car loans and consider buying used vehicles instead. There are many advantages to buying a used car instead of a new one.
Benefits of Getting Used
Used cars tend to be much cheaper than brand new cars. Because of this they are easier to save money for. They will often be sold by private owners instead of a company, and the owner is likely to be much more flexible. You save money because you are purchasing a car at a wholesale price. Unlike a car loan, you won’t have to pay interest when purchasing a used car. At the same time, there are some disadvantages to buying a used car. Used cars will often have a large number of miles on them, and are much more likely to breakdown faster than new cars. This could leave you having to make costly repairs.
Cant Addon
Used cars don’t have the options that you will get with new cars. The color and other accessories can’t be chosen, and what you see is what you get. While there is little you can do about this, you can have a mechanic check the used car prior to buying it to make sure there are no mechanical problems. If the transmission goes out, it could cost you well over $1000 to get it fixed, and this could put you into a financial strain. You should buy quality used cars from companies which have a reputation for making good vehicles.
Pay the True Value, Not What You Are Told
You should also check the bluebook value on any used car you’re interested in to make sure the price the owner is asking isn’t to high. If the bluebook value on a specific car is $3,000, don’t buy it from an owner who asks for $4000 unless there is a good reason to do so. Car loans should be avoided at all costs unless you have a stable job, a high income, or a large amount of savings.
Tags: Brand New Car, Brand New Cars, Buying A Used Car, Car Loans, Downturn, Economy, Fact Of Life, Forms Of Transportation, Job Security, Jobs, Many People, New Automobile, Personal Finance, Private Owners, Purchasing A Car, Seven Years, Wholesale, Wholesale Price, Wrong Way, Young AdultsRelated posts
Resorting to buying used cars is not a bad idea. For some people who cannot afford to buy brand new cars, second hand cars offer valuable alternatives to saving money for other important matters.
In fact, in a 2005 survey, more than 60% of people surveyed are becoming more open to procuring used cars rather than brand new.
Attractive as it may seem, before you decide to make a purchase of and used cars models, there are some things you need to know and advice that will help you make the most of buying used cars.
Below are some recommendations that you may want to follow to secure your finances and optimize your car buying experience.
Research Police Records
Do some searching on the web or through your Federal Emergency Management Agency (FEMA) or local police. These agencies will be able to help you track the legal history related to the used car you are trying to purchase.
Stolen cars reported to police agencies are tracked for possible resale. Consulting a police agency would save you from potential headache and probable involvement in the sale of illegal or stolen item.
File a Vehicle History Report
The recent hurricanes gave us a new idea of how the business of used cars works in this diverse marketplace. Cars that are completely submerged in water and totaled are sent to motor shops for remodeling and washed to bring it anew.
An interesting example to cite is through ordering a CARFAX Vehicle History Report. This verification and research policy empowers consumers to choose the right products for them and optimize the use of used cars.
Take note of the detailed damage and its extent
The history report will provide details about the level of damage including but not limited to internal and external corrosion, broken parts such as frame damage due to accidental or intentional dilapidation, fluid leaks, corroded electronic main parts and accessories and tarnished frames and the location where the car was originally purchased and dismembered for resale.
Additionally, particulars about the source of damage like due to natural phenomenon such as hurricanes and flooding are detailed as well.
Try Browsing for Online Best Buys
Take an online survey of some of the must and best buy items on the net offering used car models and brand new models. Some reputable websites offering these kinds of services like http://Car.com and invoice Dealers offer reasonable car package and discounts which will allure you to buying new cars instead due to their competitive and reasonable prices.
Tags: Bad Idea, Brand New Cars, Buying Used Cars, Carfax Vehicle History Report, Cars Models, Emergency Management Agency, Experience Research, Federal Emergency Management, Federal Emergency Management Agency, Federal Emergency Management Agency Fema, Fema, Fluid Leaks, Frame Damage, Legal History, Police Agencies, Police Agency, Police Records, Saving Money, Second Hand Cars, Vehicle History ReportRelated posts
What You Need To Consider When Buying Cool Cars
If you are one of those people who are planning to buy cool cars, you should make it a point to do your homework first before you head for the car dealers place. Always remember that cool cars can be quite expensive and if you are not careful with your choices, you could end up with something that is not really worth your hard earned money. To help you choose the right cool car, here are some tips for you.
Brand New Versus Used Cars
The first thing that you need to do if you want to buy cool cars is to decide whether you want a brand new one or a used one. Both brand new and used cars have their own advantages and disadvantages so you should be able to look closely into these things before you attempt to buy your dream car. Always remember that comparing the advantages and disadvantages of brand new and used cars will help you make an intelligent decision as to which one you will buy.
Consult Your Budget
Since money plays a vital role in your selection for cool cars, you will need to take into consideration your budget. Note that brand new cool cars can cost considerably higher than their used counterparts. However, the good news about brand new cars is that brand new cars have lesser maintenance cost compared to the used cars so if you are very much concerned about your future maintenance expenses, getting a brand new cool car may be a better option for you. On the other hand, if you are more concerned about saving money on the purchase cost of your cool car, a used car which is in good running condition may be more appropriate for you.
Select A Good Brand
Once you have made up your mind whether to buy a used car or a brand new car, the next step would be to study the different brands of cars. Note that different brands of cool cars have their own special features so it would be wise to determine first what features you want in your car and then select a car brand that can give you the utmost satisfaction. To help you select the right car brand, go to the websites of these companies. You may also read reviews about the products of these companies. The good thing about reading reviews about different brands of cool cars is that you will be able to easily compare these brands.
Tags: Brand New Car, Brand New Cars, Brands Of Cars, Buy Cars, Buying Cars, Car Brand, Car Dealers, Choices, Cool Car, Cool Cars, Counterparts, Dream Car, Hard Earned Money, Homework, Intelligent Decision, Maintenance Cost, Maintenance Expenses, New And Used Cars, Saving Money, Special Features