Automotive Hub

Can You Afford A Used Car

It’s a fact of life that many people need satisfactory forms of transport to commute to and from their jobs.  If you are like most people, your car is one of the biggest costs you will have next to your house.  In all of the research I have done on private finance, how you go about buying an automobile can have a big effect on your credit and financial picture.  If you go about purchasing a vehicle the wrong way, it can put you in a financial strain that will be tricky to recover from. 

are you able to Afford It? 

As of this writing, the average Yankee makes about $33,000 per year.  Most brand new cars cost well over $12,000.  This means that the price of a brand new automobile makes up a major percentage of the yearly revenue manufactured by most USA citizens every year.  The general public cannot afford to pay $14,000 up front for a brand new vehicle, so many decide to get car loans.  When you take under consideration the interest that must be paid, it can take as long as 7 years for the average employee to pay down this loan.  At the same time, the auto will depreciate in value, and will be worth little once it is paid off compared to its original value. 

Job Security

it is also crucial to remember that most folks don’t keep their roles for 7 years.  Many folks, especially those that are teens, may work multiple jobs inside a single year.  This shows an absence of stability, and it is simple to get into a finance strain if the economy suddenly experiences a downturn and jobs become harder to find.  It is for that reason that you’ve got to avoid car loans and consider purchasing used autos instead.  There are numerous advantages to purchasing a used auto instead of a new one. 

benefits of Getting Used

Used autos have a tendency to be much cheaper than new automobiles.  Due to this they are easier to save cash for.  They’ll frequently be sold by non-public owners instead of a company, and the owner is probably going to be much more flexible.  You economize because you are getting a auto at a wholesale cost.  Unlike a car loan, you won’t have to pay interest when purchasing a used car.  At the same time, there are some disadvantages to purchasing a used car.  Used cars will most likely have a large number of miles on them, and are miles more sure to breakdown quicker than new autos.  This can leave you having to make dear repairs. 

Can’t Addon

Used cars do not have the options that you’re going to get with new automobiles.  The color and other accessories can’t be chosen, and what you see is what you get.  While there is little you can do about this, you can have a mechanic check the used car before buying it to make certain there are no mechanical Problems.  If the transmission goes out, it might cost well over $1000 to get it fixed, and this may put you into a fiscal strain.  You can purchase quality used cars from companies which have a reputation for making good vehicles. 

Pay the True Value, Not What You Are Told

you must also check the bluebook value on any used car you’re interested in to be certain the price the owner is asking isn’t to high.  If the bluebook value on a specific auto is $3,000, do not buy it from an owner who asks for $4000 unless there’s a sound reason to do so.  Car loans should be avoided at any cost unless you have a stable job, a high income, or a huge quantity of savings.

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This entry was posted on Thursday, November 26th, 2009 at 6:31 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.