I've never bought a new vehicle in my life. I currently have 2 motorcycles and a truck, all used. The total cost for all three of them, plus the cost of insurance and fuel for a year is STILL lower than the cost if I were to buy a new car.
Look at the above chart you can see you could either buy a new car for 25,000, which means you need o borrow 19,000, and over the life of the loan you will pay back somewhere between 20,000 and 40,000. Meanwhile, the car becomes worth somewhere between 4K-10K over 5-10 years.
I think it's a no-brainer, unless you have a bunch of money lying around that you don't need. If you think trading $30K for $10K is worth it.
That's just my thoughts. I know a lot of people want new and that's fine, but a lot of people are also broke and stay that way due to doing stuff like buying new cars they can't afford with money they don't have, and selling the car 5-10 years later losing even more money. All the vehicles I've owned, with all the repairs and everything, it's still such a great deal. I tend to buy something for $5K-$8K, drive it for 2-4 years, then sell it again for $3k-$7k. I have even made money after driving a vehicle for over a year! Plus my insurance is cheaper, and if something bad happens I don't freak out, it's not the end of the world, I can just get another truck or motorcycle for another couple thousand.
Depends on your goals and your situation. The "best" financial advice is to never take a loan out unless it will increase your productivity enough to cover the cost of the interest paid. That is still good generic advice (so pretty much never get a loan for things like a wedding or a vacation). Of course, in reality, it's never that simple. In times of high inflation and low interest, it can go either way. With interest rates lower than the inflation rate, the future money you will be using to pay the loan back will have less purchasing power than the money they loaned you today (even when interest is taken into account) so that's an argument for getting a loan as long as you can afford the payment assuming all your variable bills increase by 50% over the life of the loan. The argument against the loan is that since the bank isn't paying you any interest on your saved money and the purchasing power of that money is disappearing every day due to inflation, there's minimum value in holding cash so you might as well spend it. All things considered, only you can decide what's best for your situation. Feel free to ask any follow up questions
Pretend you financed a new car. What will the payments be and how many months will you pay it in?
Buy this used car. Each month thereafter put the amount of what the monthly payment would have been on the new car, plus 10% more to account for increased cost, into your savings each month just as if you had bought the new car instead of the used one.
Now at the end of that amount of months you will pay cash for a brand new car next time. Continue to pay payments and never stop. Whenever you need a new car you will always have the cash... make sense Ms HB?
That's a great idea. I still like the idea of buying a used car and then trading it in every year though or sell it and buy another used car for roughly the same price.
You can do this on extremely cheap, reliable cars if you go to trust worthy dealerships. Stuff is less likely to happen within a 12 month period and the dealership probably will pay for it to be fixed if anything happens earlier on within the first couple of months. At least that is my experience. It works flawlessly. You could do It every 8 months even, whatever one wants really.
I think it's better to buy a car outright so it's totally paired off and you don't have to take on monthly payments along with insurance and initial registration fees it can get pricy ESPECIALLY if you miss a payment (avoid at all costs) With the car market the way it is right no I WOULD NOT finance simply because you're technically paying more than the car is worth. But it may be the only option to find something suitable with low mileage. 6g's should be enough to get you an ok ride bot it won't be no Camero. Remember generally you need more money on hand than the car is worth. If you got 6k u should be looking at 4k or 5k vehicle. Good luck!
Depends what your priorities are. Are you trying to save and downpay 20% on a 🏡 or flat by 25❓ -If so, put 3k down on cheapest red-necked rusting out/ghetto dinged and holed ride you can find for 10,000-12,000.-I’m driving one with 300,000 on it now…75,000 mile Enterprise rental car when I got it about a decade ago. Car dealerships usually get those “rental cars” so good luck there. -24 month loan and pay off in 18 months while saving 750.00 month. LIVE AT HOME-with parent as long as you can. Tell parent (s) what you are trying to do and 👀 💵 appearing in birthday cards, etc… Good Luck ‼️
You get so much more car for the money with a used one. I bought my first car for about 5k. Got a supercharged Buick regal that I kept for around a decade until I got my latest car. Still made "car payments", but it instead went into a fund for my next car.
I did go new for my latest car, but only because Teslas don't depreciate much at all, and because I specifically had a model Y as my goal. If it wasn't a a Tesla, I wasn't going to go new.
Either save all your money or buy a good used very cheap car to get you to point and be for at least 5 years because by then it'll be mandatory we have electric cars so don't be buying a brand new car because by the time you get it paid off it will be Obsolete and you won't be able to use it and you won't be able to sell it
My luck with used cars is mostly bad. With a used car, you're inheriting something the previous owner used and abused. It might be cheap up front, but how long before you need a new transmission, new tires, new cooling system, whatever. I once bought a used car, and discovered that when I filled the gas tank up, gas leaked out of a rusted seam between the two halves of the gas tank. Go with the new car.
A new car requires far less maintenance. Buying used can be a bit of a gamble, depending on how thoroughly you check the car's history before buying.
If it is possible for you to get a new a car, then do it. Otherwise buy used, but not too old. I would aim for like 2015-2016 at the minimum with a proper maintenance history.
I bought my car during a holiday special from the dealership. No Apr for the life of the loan, they loaned me all the money except a $500 down payment and the car was brand new. So basically they gave me the car and asked for the money back with no interest. Great deal
Well if you have to buy a car right now I'd buy a new one. Used ones are ridiculously priced. But if you can manage it I'd try to hold off and buy used later after prices has come down (drawback: considering the economy, political happenings around the world, and supply chain issues, that could be a while).
If you can pay cash. However, I paid cash for an $8k car and needed to put a brand new engine in it. These days, like everything. Cars are hella expensive. Do if anything that can be a very good down payment on a mid tear car. Like $10k or do. Then finance the rest for as few months as you can and pay it off as quick as you can.
I like Laurie's answer, but I say it depends. Where I live right now the used car market is stupid crazy. When my car was totaled I opted for a new one. I do tend to keep my vehicles for well over 200k tho.
It depends on your market and your situation. Good luck.
@heartbreaker007 Buy a used car and then trade it in every 8-11 months or sell it and buy another used car for roughly the same price every 8-11 months.
You can do this on extremely cheap, reliable cars if you go to trust worthy dealerships.
Wait if you can and Save up a bit more, and put that money (about 8,000) on a good model used car. Leave some money in the bank for emergencies, at least a few grand.
There are lots of great cars on fb marketplace. It's pretty easy to find a nice 60s or 70s V8 ride that will make a good start to your car collection... or a pretty yard ornament :D
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