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
Best Buy Used Car Tips: When It Pays To Be Meticulous
Nowadays, more and more people are enticed to buy used cars. With so many financial choices available and cars living longer, many people just opt to buy used cars.
In fact, many smart consumers contend that buying used cars is just the same as buying new ones if the buyer knows how to buy used cars.
So, to help those who wish to buy a car but cannot afford a new one, here are some of the best tips that can be implemented when buying a used car.
1. Research
It is extremely important for an individual to conduct some research when buying used cars. In this way, the buyer will be able to know the ideal make and model to buy, the kind of performance to seeks, and the prices of used cars in the market.
Moreover, the risk of buying used cars is lessened if the buyer knows the important details to consider when buying used cars.
2. Check the cars history
The cars history will definitely provide the buyer some solid information regarding the performances, repairs, and problems of the car. So if you CAN discover some history it would be to your advantage. In this way, the buyer will be able to compare and differentiate one car from the other. There are instances wherein used cars are being sold because of some past accidents or negative experiences. Buyers might consider more if the car he or she is about to buy has a history like this one.
3. Check the safety features
What more can you expect with a used car but it does not necessarily mean that the buyer will neglect the availability of safety features in the car.
By all means, an ideal car must possess safety features, whether it is old or new. According to some reports, almost 80% of the accidents are heightened because safety features are not available in the car.
4. Buyers should be wary about the documents that are included when buying used cars.
Buyers should be sure that the car is not stolen, there are no liens on the vehicle, and that the one who signed on the Bill of Sale is the true vendor and the possessor of the property.
5. Before buying a used car, it is best to meticulously inspect the overall condition of the car first. Buyers should be wary of any rust or damage; the tires should be checked, etc.
Indeed, buying a used car can be very tedious. Nevertheless, it will give the buyer some satisfaction and assurance that what he or she has bought is a good buy.
Tags: Accidents, Best Buy, Buy Cars, Buy Used Cars, Buying A Used Car, Buying Cars, Buying Used Cars, Car Buyers, Car Tips, Cars History, Discover, Financial Choices, Ideal, Instances, Many People, Negative Experiences, Prices Of Used Cars, Risk, Safety Features, Smart ConsumersRelated posts
Car Audio – What To Know Before You Buy Used Car Audio Systems
If you are looking for a car audio system and would love to save a little money when purchasing, you should consider buying a used system. Many people think you can only get quality sound from new equipment, but that is not true. You can find great packages that are sold directly from another consumer if you know what you are looking for. There are a few things to remember before making a purchase however. If you are considering buying a used system, think about these things before you throw down any cash.
The first thing to consider is what you need. You should always be aware of what your automobile can handle before purchasing a used system. When you go to a store to purchase new equipment, the salesperson usually assists you on knowing what you need. When you are purchasing from a consumer however, you may not be getting correct information. Since most consumers wont offer a refund policy, you will need to know that the equipment will work on your car before buying it.
The best way to figure out what you need is to go your research. Go to a salesperson or a audio specialist and ask them about the specific equipment you are looking at. Ask them if it will work in your car. You may even have to let them inspect your car, but they can likely tell you whether or not it will work over the phone. After you know that the equipment will work for your car, you will need to make sure the equipment works as it should. Ask to test the equipment, if it is not in a car at the time.
If you cannot test the equipment, you might not want to purchase it. Even though someone might tell you it works fine, they may not be as honest as you would like to think. Most sellers are honest, but there are a few who will try to trick you and you dont want to be their next victim. So, be sure that you know what you need for your current automobile and be sure the car audio system you are looking at is still usable. If you do these two things, you will be able to save yourself a lot of money by purchasing used quality equipment. It is always great to save money, but you only want to purchase used equipment that will work for you. If you dont, then you really havent saved anything at all.
Tags: Audio Specialist, Automobile Purchasing, Buy Car, Buy Used Car, Car Audio System, Car Audio Systems, Car Buying, Car System, Car Systems, Consumers, Love, Many People, Money, Quality Sound, Refund Policy, Salesperson, Specific Equipment, Test Equipment