Posts Tagged ‘ used cars ’

How to Save Money Buying a Car – New or Used

Do you want to save money when you buy a car? Don’t go out to a dealer, at least not right away. First do some homework, get the information you need–then head out looking for cars.

You’ve heard it said, “knowledge is power”, and no where is that more true than when it comes to buying a car. Here’s the main point: you’ll be going into a car dealership that not only has the cars you’re interested in, but it’s also a place that’s filled with people who generally have more knowledge about their vehicles than you do. From a financial standpoint, that’s a disaster waiting to happen. The greater the knowledge gap, the more likely it is that you will pay too much for what ever you buy.

How do you get the information on the car you want to buy? In the old days, you probably had to hook up with a “car guy”—one of those people who seems to possess an almost supernatural understanding of all things automotive. But today we have the internet, and that’s really leveled the playing field. There are websites dedicated to providing not only free information about all kinds of cars, but even the best car dealers to buy from!

That last point shouldn’t be taken lightly either. There are different kinds of dealers—independent or franchised—and there are also car supermarkets. Which one you work with will have an impact on the deal you get on the car you buy.

Finding the best deals on new cars

How to Become a Expert BEFORE You Buy a Car

By Kevin M

If knowledge is power then the lack of it is weakness! Don’t think this message is lost on your friendly neighborhood car dealer! Car salesmen can sniff the knowledge weaklings before they even get into the showroom, and will make them pay more before they walk out.

Not nearly all of us are car experts—in fact most of us are not. But that should never mean that you walk into a car dealership and throw yourself at the mercy of the car salesman in the hopes that he’ll be a straight up guy and give you the best deal possible.

Fortunately, in this day of the internet, any of us can become car experts—or at least better informed consumers—before making the buy. Just knowing the right places to go on the web can raise your car buying knowledge a few notches.

You’ll be spending tens of thousands of dollars on a car—new or used—and just a few hours of research can save you thousands of dollars.

If you’re not a car expert, check out one or more of these before buying your next car.

Cheap New Cars – Are They Worth the Money?

By Kevin M

Yahoo! Autos had a great piece from CNN Money last week. 10 great cheap cars gives a list of ten cars for well under $20,000.

A few on the list for 2011, with their given price ranges, include:

Ford Fiesta, $13,320 – $17,120
Chevrolet Cruze, $16,275 – $21,975
Honda Fit, $14,900 – $16,410
Kia Soul, $13,300 – $18,495
Honda Civic, $15,605 – $25,490
Nissan Versa, $9,990 – $16,900

Looking at the low end prices on these cars, it’s clear that they begin to compete well with better quality used cars, and for that reason alone they merit further investigation.

We should never buy anything on price alone, but as expensive as new cars—and even used cars—are these days, these prices are…interesting.

But what are we getting at these prices? Are they actually decent cars that will last a few years, or are they throw-aways—the ultimate manifestations of “planned obsolescence”—destined for the scrap yard after five years? Do they come with important options—like engines—or are they your basic “Flintstones Car”???

Your Kid Doesn’t Need a New Car

By Kevin M

Comedian Jeff Dunham says people who buy new cars for their kids have it all wrong. 16 or 17 year old kids, he emphasizes, don’t need a new car–they need a bumper car. And he was talking about his own daughter!

I agree!

The closest thing to a legitimate sounding opinion I’ve heard for buying a brand new car for a kid is for safety, that new cars incorporate the latest and best safety features and it’s worth paying the extra money for better survivability in the event of a crash.

Maybe. But maybe not. I’m not convinced that the newness of a car has as much to do with safety as the make of a car. Think Volvo here—historically one of the safest cars available irrespective of age. I’m also equally certain that when human beings are feeling the itch to spend money, nearly any decent sounding justification can and will be used to support the decision, reason and logic be damned.

What are some compelling reasons for not buying a brand new car for your kid?

10 Things You Should Buy Used

By Kevin M

America is often described as a “throw away society”. We buy things—usually brand new—use them for a while, get rid of them in some form or fashion, then move on to the next thing.

This creates an enormous pile of stuff sitting somewhere—much of it of pretty good quality—and presents a real financial opportunity to anyone willing to invest some extra time and effort in buying what they need.

Why buy anything used? For one thing, new isn’t always better; sometimes we can get better quality merchandise second hand that we could never afford brand new. Sometimes, the item in question is one we don’t use that much, or won’t use for very long—why pay a premium for it?

But more important by far: any money we can avoid spending is money that can go either into debt reduction or directly into savings.

What are some items that are better bought used than new?

Save Money on Car Repairs by Thinking Outside-the-Box

By Kevin M

Perhaps more than any other expense I have to pay, I most dislike (OK, despise!) paying for car repairs. It’s not that I expect our cars to run maintenance and repair free, year after year, but I can’t stomach the idea that every time we bring one of the cars to the shop we get hit with charges of $500-$1000.

We just had a recent experience with this, and I stepped out of character and went the full price repair route to handle it. Maybe I need to do that from time to time just to remind myself why it is I’m always looking for a better way.

Now, be forewarned, I’m not a “car guy”. My interest in car repairs is strictly from a financial standpoint; cars are one of the biggest expenses the vast majority of us have, and I’m always looking for- and experimenting with- ways to save money here. But back to the story…

New Car or Used Car – Which is the Better Deal?

By Kevin M

Question: is a car an asset or a liability?

That was a theory question in a sophomore level accounting course I took in college way back when. After some debate among the class, the professor confirmed what we all knew, that the technically correct classification is “asset”, but felt compelled to add, “Of course, in the real world, we all know that automobiles aren’t assets at all, they’re liabilities that cost money and continually drop in value from the moment you drive them off the dealer lot.”

Most of us know this to be true intellectually, but does that reality guide our decisions at buying time?

Cars represent a structural expense, that is, an expense that’s mostly a consequence of an underlying cost structure created at the time of purchase. Once we’ve made the initial purchase, we’re largely stuck with the expense level over a period of years. It’s in our best interest then to make the most intelligent decision at the time of purchase.

With that thought fresh in our minds, I believe used cars are the better choice for most people in most cases.

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Posts Tagged ‘ used cars ’

How to Save Money Buying a Car – New or Used

Finding the best deals on new cars

How to Become a Expert BEFORE You Buy a Car

Cheap New Cars – Are They Worth the Money?

Your Kid Doesn’t Need a New Car

10 Things You Should Buy Used

Save Money on Car Repairs by Thinking Outside-the-Box

New Car or Used Car – Which is the Better Deal?

Financial Management