Buying a New or Used CarPosted on October 15th, 2010 William No comments
You have, no doubt, heard the conventional wisdom that it is always smart, financially, to buy a used car rather than a new one because they depreciate so much in the first three years. Ten years ago, this was probably even true.
These days, however, it's not so clear-cut as all that. Due to a number of factors - more demand for used cards, less production of new cars, Cash for Clunkers - the price gap between new and used cars has narrowed dramatically; in unusual cases, used cars have sometimes gone for more than new models!
When buying a car, first decide what type of car you want and what you're looking to spend. The ideal, of course, would be to get what you need for a low price and pay in cash., but of course this isn't always possible. Once you've decided what car you're interested in, then consider the price difference between buying new and used and ask yourself whether the extended warranty period and lower mileage are worth the price difference. Also, be sure to take taxes into account, particularly if you're looking at energy-efficient vehicles; your state, for example, might offer tax credits for the purchase of new electric or hybrid vehicles.
Get the financial stuff figured out, and then you can concentrate on picking out the right color..
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