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
Benefits of Buying a Vehicle from a Brunswick Used Car Dealer
Benefits of Buying a Vehicle from a Brunswick Used Car Dealer
Each day a large number of individuals purchase a used vehicle. If you live in or around the Brunswick area there are numerous benefits to purchasing your vehicle from a Brunswick used car dealer.
One of the best reasons for buying a used vehicle from a Brunswick used car dealer is to support the local economy. In a world that loves internet shopping some of the businesses in your area may be seeing a decrease in sales. This sales decrease can sometimes be seen in car dealerships as well. Although you may not think that purchasing a vehicle from a local Brunswick used car dealer will make a difference it actually will. Without profits many businesses may have to cut back on the number of employees that it has on staff. Potential cut backs may cost your friend, your neighbor, or even yourself jobs.
Purchasing a vehicle from a local Brunswick used car dealer will also work to your advantage if something were to happen to your vehicle. Providing warranty or maintenance plans are completely optional to all used car dealers; however, there are some that do. Even if your vehicle does not come with a warranty or maintenance plan many buyers are given small discounts for having repairs completed at the dealership where the vehicle was purchased from. Once again, even if you have to pay for the repairs you will still be giving back to your community by having the service performed locally.
In addition to potentially cheaper maintenance, if you purchase your vehicle locally you will be closer to the dealership. This will help you in a number of ways. If you have to return to the dealer for additional work or meetings you will not have to travel far. This will not only be convenient, but it can save you time and valuable gas money. With a large number of quality Brunswick used car dealers in the area there is really no need to travel a long distance in search of a used vehicle.
If you are interested in purchasing your next used vehicle from a Brunswick used car dealer you will need to find one to visit. There are a number of ways that you can learn about the car dealerships in the Brunswick area. You can learn about used car dealerships through word-of-mouth. It is likely that at least one person you that know will have recently purchased a vehicle at one time or another. You should ask them where they purchased their vehicle from and if they were satisfied with the service that they received. You may also use a local Brunswick phone book or the internet to learn about used car dealerships in the area and where they are located.
If you purchase your next used vehicle from an area Brunswick used car dealer you will not only be getting a vehicle, but helping your local economy at the same time. If you are planning on purchasing a vehicle why shop somewhere else when what you need is already located in your own community.
Tags: Brunswick Area, Buying A Used Vehicle, Car Benefits, Car Buying, Car Dealer, Car Dealers, Car Dealerships, Cut Backs, Economy, Gas Money, Internet Businesses, Internet Shopping, Jobs, Maintenance Plan, Maintenance Plans, Neighbor, Profits, Purchasing Vehicle, Vehicle Warranty, Warranty