Owning a car is a dream that you cannot shake off from many people. Some buy it to fit in, for class or just convenience. Some even go ahead to get a loan they cannot afford just to look like they have made it in life. You even go for the latest make to make a statement. It will turn heads, more girls will be attracted to you and even the lawyer at Diamond and Diamond Vancouver will treat you with some respect the next time you are there.
The smell of a new car, the fleek and smooth look is irresistible. You might not really need a car. In fact, Uber can fix all your transportation costs cheaply. You can forget insurance costs, distractions, maintenance and gas costs. Your life will still be awe some without it. But if you have to, never buy a new car. Here is why;
If you are particular about how you spend your money, buying a new car is a waste. You will pay more for less. True you won’t have to deal with broken brakes and rats left by the previous owner in the booth. However, a car depreciates, be it old or new. You are probably paying for the alluring smell of new cars and the shiny texture that will eventually wear off.
So what then? Forget about getting a loan to get a new car. Buy a second hand car at a cheaper price and get the same value. Invest the extra money elsewhere.
The rate of depreciation is high for a new car within the first year and flatten out in the second year. The motor vehicle industry is now building cars that will last longer with less hitches. So buying a second hand car that is still in good condition will minimize depreciation for you. If you want to sell it later, you can do it with a minimal loss in value. If you want cost effective, used car is the way to go.
3.Low insurance and registration costs
Registration costs are normally based on the cars transaction price. If you buy a new car you will pay more to register it than a used car. A second hand car is cheaper and hence reduced registration fee
Insurance costs are also based on the value of the car. As it grows older the insurance costs reduce due to depreciation. You could even ditch some insurance policies as your car grows older.
Previously buying a used car meant that you have to put up with broken brakes, dysfunctional chassis and air bags that are not working. Since 2012 the cars being produced in the industry are built to last and therefore buying a second hand car will still give you the safety of a new one if carefully selected. Two years later, a good car will still be good and safe.
5.Get more for less
You can actually go a level or two up within your budget. If you wanted to buy a cheaper new car, considering a second hand car will allow you to buy a better one at a low price. A two-year-old Benz will still look new and it will serve you better than a lower model.
Don’t buy cars emotionally. Living without one is possible but if you have to invest in it for some reason, always buy a second hand car and enjoy the benefits. Take your money elsewhere to multiply than spend it only for it to lose value eventually.