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July 25, 2008, Newsletter Issue #88: Why Buy Used?
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Tip of the Week
New cars are awfully tempting, but they are also much more expensive than used cars. Even though used auto loan rates are usually higher than new auto rates, the difference in the prices makes it worth it. Many dealerships offer used cars that are just as nice as newer cars, and many times you can find a used car with some of the warranty remaining. The best reason to purchase a used car is the lack of rapid depreciation. New cars lose their value rapidly, but used cars have already had a huge value plunge with the first owners. When you purchase a used car it does not suddenly lose a large portion of its value like many new cars do. This makes the idea of buying a used car much more attractive. Considering many people trade cars in after only having owed them for a year or two, you can usually find a relatively new car for a used car price if you are willing to spend some time looking around at various dealerships. You should consider buying a used car if you would like to save money with your auto purchase.
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