It is worth considering to buy a used car if you want to save on your transportation costs. Although a new car is easier to get financing, buying a reliable used car is an ideal way to own a vehicle cost effectivelly espeically if you are able to pay it by lump sum cash.
A new car will drop 30% in value the moment of driving it off the lot, and it will continue to depreciate at a very fast rate. When you finally pay off your car loan, the car may be worth very little on the open market or as a trade-in for another vehicle. Buying a new car costs you far more in the long run.
For those who are making the car payments on monthly basis, it is also a good idea to continue make the equivalent payments into your savings account, and you then can use those savings to buy your next car when time is right.
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Lillian & Benjamin, we help families achieve financial success
April 6th, 2008 at 4:30 pm
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