New Car - Buy vs. Lease?
Crunch the numbers to determine whether new or used is better.
It seems as obvious that buying a used car, even just two or three years would be cheaper than buying a new one and this has always been the case, but in an economy to low, you can expect t this type of logic anymore because you can find exceptionally good deals on new cars is always a good idea to crunch the numbers and take nothing for granted regarding a major purchase.
New cars lose faster than the last value pop teen star soon as you drive a off the lot, the car depreciates Here is why you probably paid the retail price at the dealership, but once you buy the car, it is worth wholesale prices - the price the dealer will pay you to buy your new car is probably worth thousands less than what you paid on the same day as you drive home most cars depreciate about 47 percent during the first three years, according to consumer Reports.
Used cars have already taken this big depreciation hit, so they are often a better value, especially cars only two or three years old used cars only lose about 18 percent of their value in the years three to six cars tend to go well past 100,000 miles if they were well maintained, and many can hit 200,000 without major problems.
You might be able to buy a car older than 3 years 2 or less than what you pay for with a new one, but you have to figure in the cost of warranty repairs usually cover a car for the first two or three years alone Not only you have to pay for repairs when the car is out of warranty, the car, the more expensive the repairs are usually the first major repair is usually necessary to 36,000 miles, which is about the third year, you will also replace tires, battery and brakes at some point in the near future after the 36,000 mile mark There is always a chance, too, that the previous owner did not care for the car or the car is a lemon, you can reduce your chances of buying a lemon by having a mechanic inspect the car before buying it.
In a down economy when people do not rush to buy new cars, you will often find dealer incentives to get you to buy a typical incentives are a manufacturer cash back, lower prices on new cars that is the model of last year or even low zero or 1 percent - interest rates a down economy also means higher demand for used cars This results in less available used cars and worst deals for you when you shop for them.
Buying a New Car Vs purchase.