Auto Bargain Reviews on getting best deals

Buying a used car is something that is quickly catching on for many of us. I am probably going to be one of those people that winds up buying a used car as my next vehicle rather than buying new. Every car that I've ever had the luxury of driving has been brand new. However, after my latest foible of purchasing a brand new vehicle that has had nothing but problems with it since day one, I have set my sights on purchasing a used vehicle.

Used vehicles aren't better than nor are they worse than purchasing a new car. Rather, it is merely a choice of preference. What many first time car buyers do not realize is that as soon as you drive that new car off of the parking lot from the dealership, it immediately loses its value. It is a sad but true fact. And right after I realized that my choice to purchase the car that I wound up with, I returned to the dealership just a few weeks later to find out how much I would be able to recoup and was shocked to learn that it had already lost half of its value! Imagine my chagrin when I, dumbfounded, left the dealership and started to feel incredibly ashamed that I had rushed into such a major decision.

A couple of years later, and in a slightly different financial position, I am now considering getting a different vehicle altogether. The main thing to consider when purchasing a car (whether new or used) is to know what kind of a driver you are. You absolutely cannot go into a dealership and pick out a car because you liked the way it looked on a commercial that you saw. Instead, you have to go into it with a much more clear head. What kind of driving do you typically do in a week? Are you the kind of person who goes on a lot of weekend trips? Are you close to your family or friends who live hundreds of miles away? There are other things to take into account as well. For instance, what kind of salary do you have? What is your monthly overhead with all of your bills taken into consideration?

Financial matters have never been more important in a tough economy. Spending our dollars wisely is the best protection any family has against recessions and a bad economy. When it comes to buying either a new or used car, there are a lot of cost issues at play. Obviously, a used vehicle has a lower purchase price than a new car, but is it worth it to own a vehicle with miles already on it? Where is the money better spent during car sales?

Let's run some of the numbers: New Car Sales

As an example, take a new car sold at $20 thousand with $2000 down and the remainder financed for 6 years at 6%. What is the total cost of this vehicle over the life of the loan? With interest and finance charges, that $18 thousand remaining principle becomes nearly $26 thousand after six years. So that new car ended up costing a total of $28 thousand when the sticker price said only $20 thousand.

That is the power of compound interest. While interest can make your 401k and savings grow, it will also generate debt on the other hand.

Monthly Payments And Maintenance

One of the benefits of a new car is that the entire purchase price is spaced out over many months, making it affordable to own. New car sales typically require less maintenance costs in the first few years of ownership and are covered under warranty if anything does happen. But what price do we end up paying for those benefits?

Take a typical monthly car payment of $300. A used car has no monthly payment, but may require more maintenance. How much maintenance will $300 a month pay for? All of the routine work that a car requires is much less than that; four oil changes, two tire rotations, and a few replaced filters, fluids, and accessories might be $300 for an entire year. With the other 11 months of finance payments, a used car could have a total engine tune up, buy a new set of tires, flush the transmission system, redo the front and rear brakes, and then throw in an alignment and a new fuel filter.

As you can see, the cost of ownership for a used vehicle is much less than a string of monthly payments over the life of a car loan. When you add up all the number, used cars are really the most economical choice.

Another Used Car Perk

Some people are skeptical of used car sales for a number of reasons, but they are not always true. For example, there is a myth that older cars get poor gas mileage. In reality, new fuel mileage standards have been in place for so long now, that used cars are not technologically behind their new counterparts. A well maintained vehicle, used or new, will have great gas mileage. The same can be said for many amenities and features; they have been coming standard on even base models for years and are showing up in most pre-owned vehicles.

Some people have to have the latest model, but for those watching their budget, used car sales are the economical choice.

Click on Best Auto Bargain for more information