Cars are expensive to run and the cost of doing so can sometimes almost be unjustifiable. Nevertheless, for many people, a car is an essential item. They take us to and from work, to do the shopping, they allow us to transport our children and they give us the means to visit family and friends. So, for these reasons and more, it’s vital that you know how to get the best vehicle for your money.
The Benefits of Used Cars
At first glance, it might seem obvious that a used car will be much easier to afford than a new one. They generally cost less and insurance is often not as expensive. However there are plenty of hidden costs which need to be taken into account before purchase, such as repairs and maintenance. Used cars are much more likely to break down than new cars and you won’t have the support of a dealership to help you out in an emergency. Not only that, but parts for older cars are harder to track down and usually cost a little more. So used cars can seem cheaper in the short term, but have the potential to become costly in the long term.
The Benefits of New Cars
New cars are usually more expensive to buy, in the first instance, than used cars. This often deters prospective purchasers who are worried about raising the necessary finances. However new cars offer a number of benefits that used cars don’t, which can alleviate this burden in the long term. Dealerships usually offer some kind of financial incentive such as free insurance or breakdown cover, as well as a number of negotiable financing options that are perfect for people who can’t afford to buy a vehicle outright.
Weighing Up the Costs
The most important thing to remember when you’re buying any kind of vehicle is that, no matter which option you go for, you need to be prepared for long term costs such as insurance and tax. Always investigate your options before a purchase and remember to shop around. For example, some insurers offer discounts for new policy holders which can greatly help to reduce the cost of running a vehicle. These kinds of deals are perfect for any vehicle owner, whether you choose to buy new or used.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.