Buying a car can feel like a daunting task. Perhaps any major purchase can feel as such. When buying a car it’s important to consider whether or new or used car is right for you. Of course, there are pros and cons to buying a car, new or used. Regardless, a car will depreciate in value. You will lose money. It’s an investment that depreciates but unless you live in a big city with great public transportation, it’s a necessary one. Buying a new car can easily seem like the logical choice, but that “new” car depreciates significantly the second you drive it off the lot. It depreciates, depending on the vehicle, up to 47 percent in the first three years. So buying a used car isn’t simply a “cheaper” option, it actually makes more financial sense.
A used car will often have lower insurance rates and depending on the manufacturer, could still be under warranty. As with buying any car, it’s important to do your research and understand the purchase you are making. If your heart is set on a certain car or even buying a new car, take that into account. Being wise with your money is great, but you want to make certain you enjoy the car!
While buying a lightly used car makes the most financial sense, do your research. Have the car checked out. Compare prices. Ask an expert or a knowledgeable friend. Choose what works for you and be happy with your investment. After all, it is an investment you will use on a daily basis for months and years to come.