Buying a New Car or Slightly Used?

There is something in the air- I mean, I am not an economist but there is trend that I am seeing repeatedly in the search terms people are using to hit my blog and the many questions that I see coming across the Buying & Selling forum within Yahoo Answers: people want out of expensive new car loans and into less expensive cars.

Now I have addressed that issue several times now but what if I could get people before they get into that dangerous loan zone where they end up upside down and in over their head?

If I could stand in the street with a big sign (on a soap box, of course), I would tell everyone to buy slightly used and here is why:

1. A car depreciates most the first year of its life- as much as 30% and after the 2nd year, a typical car is worth 60 % of its original cost.

2. Cars are now more reliable than ever with most models having a life expectancy that when properly maintained, will last a whopping 15 years or 225,000 miles!

3. Extended warranties on new cars from dealers will not usually cover the things that really need to be fixed so buying without a warranty will save you a load of cash.

4. More lenders- banks, savings and loans and insurance companies are offering financing for buyers who want to buy used from private parties because they know that they will be saving money.

Of course there are arguments why buying brand new with cash and hanging onto a new car forever is a good move but for those of us who need financing, saving interest payments on 2 years of massive depreciation is the best idea ever.

Just remember- when buying online and from private parties, invest in an Experian AutoCheck and get a qualified mechanic to give it the once over.

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