Preowned Cars Vs New Cars

Should you buy preowned cars or new ones?  The moment a new car leaves the dealership it's value falls.  The answer is a lot easier with that information.  Since a car is a depreciating asset, meaning in general cars lose value with time,  the best money decision is to purchase the car when it will tend to lose less value.  Maintenance costs are also a factor.  The slightly used car is about the best for both concerns.  The big hit to car value has already occurred.  That loss went to the original owner.  The car likely won't need constant repair work, and the warranty is still probably valid.

Many sources provide these slightly used cars.  People who buy or lease new cars trade in their old ones to the dealer.  The dealers want to sell those cars.  Companies like Carmax specialize in used automobiles, while eBay has an entire subsection dedicated to car auctions, mostly for used vehicles.  Speaking of auctions, most cities have a lot of auctions taking place every day.  Dealers auction cars, as do cities when police confiscate them from criminals. 

Kelly Blue Book is a valuable resource to determine the relative fair price of a used car.  Categories include make, model, year and condition from poor to excellent.  Sale by an individual or dealer is also shown.  Dealers have overhead private sellers don't have so that is important.

What about financing a used car?  Think about saving up the pennies and making a cash purchase.  That saves money in the long run.  It's nice to own a top of the line auto.  But consider something a little simpler with a few less bells and whistles.  Buying a car like that used can not only help the budget, but creates less stress.  Theft, wear and accidents are bigger worries for people with fancy cars.  A scratch doesn't mean as much on a less expensive car. 

Sure cars are a status symbol, but wealth isn't based on what you spend.  Wise spending turns into wealth.  Most rich people get that way by saving money.  Good used cars help the budget.

Find more info on cars and rental cars here Budget Auto Rental