The world is an expensive place but the good news is that if you can plan and put together a budget, pretty much anything is possible, whether you want to go on an adventure with your family or buy a new car.
Buying a new car might seem counter intuitive to spending money. Used cars are cheaper. Older cars are typically more reliable. Buying new seems like an unnecessary luxury when there are already tons of cars out there that will do the same job but for less money because they are a few years old. The truth is that buying a new car can be in your best interests.
First, let’s define “new.” For the purposes of this article “new” does not simply mean “new to you.” It means “released within the last 24 months.”
Buying a new car is beneficial for the following reasons:
1. As cars age their parts get harder to find. This means that if you need to have a part replaced it will end up costing more than you would pay to replace a part on a new car.
2. Not all car repair skills are universal. New cars have different parts and engineering than older cars, which means that knowing how to work on older cars is a specialty. This specialty allows mechanics to charge more for their services. This means that the cost of labor for repairing your used car will likely, on average, be higher than the repairs you’d need on a new car.
3. Older cars break down and need to be fixed more often than new cars. It’s simply something that happens as the parts age and start to physically break down.
4. Newer cars get better gas mileage across the board. This means that you’ll spend less on gas over the life of the car.
5. Newer cars are more environmentally friendly, which means they carry less guilt with them than you’d feel driving around something older.
PRO TIP: To get the best deal on a new car, buy it from a dealership that sells both new and used cars side by side (like Ken Garff Ford new cars). This will give you the option of buying a car that technically is used, but might only be a few months old and is simply being sold off to make room for something even newer.
Finding the money for a new car isn’t always easy. New cars are a lot more expensive than something even a few months old or that has a few miles on it already. Here are some things you can do to reduce the amount of money you have to borrow.
1. Sell your old car. Don’t trade it in; sell it to an independent buyer. The sales price is higher than the trade in value. Get the most money you can.
2. Save up to increase the amount of money you have on hand for a down payment. As someone who believes in a sustainable lifestyle, you are undoubtedly already good at finding those extra pennies and saving money on every day things. Save up for a few months.
3. Add the amount you’ve saved to the amount of money you get from selling your current car.
These three tips can help you cut down your loan in half!