If you’re rolling in cash and find dropping 20 or 30 grand on a new car to be an easy financial decision, then the answer to this question is obvious. I suggest you to do the following:
- Click out of this blog post
- Go to the bank
- Make it rain on my house – immediately, if you will.
But for the rest of you folks who work paycheck to paycheck and are in need of a new car, heed my warning and avoid the brand new cars entirely.
Yes… I know, new cars are tempting. No miles, no scratches, and a fresh warranty? Sounds fantastic!
But in all honesty, a pre-owned vehicle can be just as good!
In article by US News titled “5 things you should always buy used”, cars were number one on the list.
“Often a car that’s only a couple years old will cost a fraction of its original sticker price, and is there really much of a difference between the 2013 and 2014 model? Not really. If you buy new, you’re mostly paying for negligible feature upgrades and the cachet of having a “new” car.”
A very valid point.
As I have said in a previous post, when I purchased my car I was able to get the new body style I wanted, plus features such as leather seats and voice controls for a fraction of the price of a new car.
Had I leased a brand new Mustang I would have actually been spending about the same monthly than I am now for a car that was three years newer. It was tempting, yes, but ultimately I wanted to OWN my vehicle, not rent it. Plus, with a leased car I wouldn’t be able to do a lot of the tuning and physical changes that I envisioned for my car.
It really just makes better financial sense to buy a used car.
But if you need proof, check out this interactive graphic from edmunds.com and see for yourself. To calculate how much a car will depreciate in time, click on the link and enter the MSRP of any new car of your choosing.
<!–// Source: How Fast Does A New Car Lose Value