With the economy changing as much as it is, one has to wonder if a new car is really worth it. Is it worth spending that extra money when you could get a used car that is in good shape? When people buy a used car, the sticker price is not the only thing they save on. There are many ways you can save when you buy a used car.
First, you can save on gas. Many people think the new cars offer all the gas savings, but that is actually not true. You could get a new hybrid and save on gas, but studies have shown it can take you between five and ten years of owning a hybrid to actually get ahead in the cost department. That is because of the sticker price of a hybrid.
There are many cars that were made in 1990s to the early 2000s that get excellent gas mileage. Consider a Corolla, or a Mazda Tribute. They are both affordable and will save you a great deal of money on gas. When you are able to get an affordable vehicle that also offers a great savings on gas, you will save quite a bit of money in the long run.
Also, you will save money on insurance. When you buy a new car, your insurance company is going to give you an expensive policy. The cheaper the car, the less you pay for the insurance. That means people who are driving around in used cars are going to get some great deals.
Many used cars are also cheaper to maintain. The parts in cars are getting more and more expensive. If you buy a used car, you have a greater chance of getting a car that has replacement parts for a much better price.
In addition, many people pay off a used car faster than they pay off a new car. Because of that, they are able to get rid of their car payment and then really feel the difference in their bank accounts. Most people take out a five year loan with a new car, but when it comes to a used car, many people only finance for three years. That means less interest and less time paying on the loan. You can save quite a bit of money this way, and you are likely to really benefit from this savings.
Used cars offer a great deal of saving. Of course, you are going to save money on the cost of the vehicle, but then the savings will continue. If you are looking for a long term savings, consider a used car.
Add up how much your savings can be with a used car and you will probably be shocked. Think about gas, insurance, parts, and repayment. When you look at all of those factors, it only makes sense to buy a used car. With the way that the economy is, it is in your best interest to purchase something that will cost you less money instead of more money.
Related posts brought to you by Yet Another Related Posts Plugin.
#1 by javier on May 28th, 2010
It should be 4-door, 4-cyls, not sporty. I would prefer Honda or Toyota… First time drivers usually have much more expensive car insurance, and it depends from car. You should compare insurance rates while choosing the car – for example here – carinsurance.yoll.net
#2 by Some girl on May 28th, 2010
i own a shop ,and where you save the good money at is someone else already payed all the big sales tax on it,and they suffered the depreciation on it,so the price of a used one comes down a lot in the first 3 years,so you can save several thousand real easy,and still get a low mileage vehicle ,but there's some really good deals on used ones right now,dealers are more interested in selling new ones not used ones,there's more profit in a new one for them than a used one,the one your looking at sounds like a real good deal ,just have it checked out really good before you buy it,good luck on it i hope this helps.
#3 by Wordpress on May 28th, 2010
I have never once responded to a youtube video (though I am a youtubeaholic), but I must admit: that “I saved more money by switching to Geico” was downright hilarious. Thanks for making me laugh!!
#4 by WPMixer on May 28th, 2010
Dump your cell phone plan, dump your internet plan and all cable TV…go out to the beach everyday and surf or swim, or go golfing, any hobby you enjoy. Spend money only on food and on occasion spend some money for yourself once every 4 to 5 months! Problem solved!!!
#5 by Anonymous on May 28th, 2010
Check out my “mad man” video shot in the aisles of Walmart!
#6 by Soul Seeker on May 28th, 2010
Your best bet is to save and buy a used car from a private person. Some dealerships will finance with no/bad credit but you will pay way more than the car is worth. Find a car type you like and research what it is worth. Save up and start looking for that type of vehicle.
#7 by Lisa Marie on May 28th, 2010
If you're employed and do not need a car immediately, take $500 and convert it into a secured card credit. Make sure they belong to the credit bureau and use it for gas and small items and always pay the balance. The remaining $500 should stay in the savings account for emergencies.
#8 by Blogger on May 29th, 2010
We do have a land line for contact with the children’s school, doctors, and my school advisers. It costs us $20 per month for the bare minimum.
#9 by Usedcars on May 29th, 2010
You'll save lots of $$$ actually. Just be sure that what you are buying isn't a piece of junk and that you're getting your cash's worth.
#10 by Anonymous on May 29th, 2010
if you wanna save money most specially on mobile phone bills then use 08000mumdad.
#11 by Anonymous on May 29th, 2010
@MrEnergyCzar Your video is great! Thanks for sharing it. I only watched one – it would be great if you could summarize what each of the upgrades you did cost you.
We also love T-Mobile – we promote them on our web site and have 2 of their prepaid phones.
Steve
#12 by WPBlog Shop on May 30th, 2010
@pest0711 i also consider myself as one of the cheapest person.. in mobile phones, i use reverse calls like 08000mumdad. clever ei?
#13 by Free Blog on May 30th, 2010
My husband and I love pre-paid phones. Especially since he works out of state 90% of the time. We have pre-paid phones with mobile to mobile. We chose Cingular since the majority of our friends and all of our families use that service. It costs us about $30 every 3 or 4 months total.
#14 by Anonymous on May 31st, 2010
Dump your cell plan and get T-Mob pay as you go (minutes only).. I pay $100 for 1,000 minutes per year, no contracts…thats over an hour a month….
#15 by Swissmiss on May 31st, 2010
Make more. Spend less.
#16 by cb on May 31st, 2010
It will probably take some time to get someone to assume your lease, so i think you will break even. It may seem like a smart thing to do right now since money will probably be tight, but it would probably be wiser to stick with your lease until its done. Keep in mind that getting into cars requires that you pay new licensing fees, bank fees, etc, so a $9k car may easily run you $10k+ after all is said and done. So it's a wash in my opinion. Just stick with it and ride it out until you turn in your car.
#17 by Trish on May 31st, 2010
I'm looking into buying a car too. My old car is stopping without notice and leaving me stranded lately.
I once bought a used car, and it actually didn't save me any money at all. It didn't last that long, and the amount I paid for the time it lasted was about the same as the payments would have been for a new car during the same time period. It was a Subaru Legacy wagon with 70,000 miles and hydraulic system that failed fairly soon. I bounced around like I was riding a pogo stick in it, and a mechanic said it would cost more to fix than the car it was worth, but car was unsafe to drive. That kind of put me off used cars as a money saving choice.
The Prius will be wise, IF you keep the car for a long time after you have paid it off. Or the price of gas rises above $5 a gallon. However, there are other non-hybrid cars that get pretty good mileage, that are significantly cheaper. For instance, the Mazda 3. If you owned either car for 5 years, and gas was $5/gal. the Prius would end up costing you about $100 more at the end of 5 years for payment and gas. Not figuring cost of insurance in this. So that really isn't a savings. The Mazda would allow you to pay less money up front, but more money at the gas tank. The Prius would require you to pay more money up front and in payments, but less at the gas tank. However, you'd end up paying a little more overall. Since gas is cheaper than that right now, you actually save more with the Mazda.
I'm thinking I will lease for a while and then buy when the prices of hybrids are not inflated over regular cars so that they erase the gas savings by charging more for the car up front.
Also, Edmunds has a lot of features you might like. They have the true cost of ownership of cars that factor in payments, insurance, interest, gas, maintenance, etc. They have a section that shows how long you have to own a hybrid before it pays for itself in gas savings. You should check it out.
I think buying a Civic or Toyota used could also be a good choice. Just don't buy a used car with something kind of out of the ordinary like a hydraulic lift system that could go wrong and be too costly to repair.
#18 by KinGofDramA on May 31st, 2010
Unless you are after something exotic, no it is not!
By the time you both do all of that flying, almost any and all of the perceived savings are going to be lost.
So I have to say, if you can find the same car closer to home, buy it there.
If you want something exotic, try Hemmings Motor News!