Can A Used Car Be A Better Investment?

Buying a new car is no easy decision. Since it costs quite a lot of a money, people have to really think hard before committing to such a purchase. Of course, if your current car is breaking down constantly, and you cannot rely on it, you really do not have much of a choice. But perhaps there is a better way to approach the question.

A new car can easily cost you upwards of 30 grand. That is a money that you likely do not have right away. But think about it – such a cost is equal to the mean yearly income of an American. Is your car worth a year of your life? What about six months?

The alternative is to go for a used vehicle. In just a couple of years the price of a car can drop tremendously. You can end up paying a fraction of the money that you otherwise would have spent on a similar model. And if you use the services of auto transport companies, you can get a great deal anywhere in the States. But is a used car a good investment or is it more of a liability?

When Should You Buy A Used Car?

The truth is that there is no real reason why you should not go after a used vehicle. In terms of practicality it can be just as good as a new one. Many dealerships now have special used vehicle lots, because many people have started seeing the benefits of going the used route.

That being said, there are specific occasions when a used vehicle is definitely the right choice for you. The first one is if it is going to be the first car you are buying for yourself. Perhaps you are out of college and now you want a decent ride. There is no reason to go into more debt by leasing a new vehicle. Getting a used one is cost-efficient and you will also have peace of mind that you won’t be beating up a new gem.

Alternatively, a used vehicle is perfect if you need it to be your workhorse. However, be careful to pick a car that has not been overly abused through the years. Pickup trucks are notorious for going under heavy use, which is why a used one may not be the best option.

But What About Buying New?

While used cars can obviously be a good investment, there is a time and a place for new ones as well. A general rule of thumb is to buy a new car if your job depends on it. If you have to keep up the good the looks, and the car is as much a part of your image as it is a daily driver, then there is no excuse but to go for a new one.

I will go as far as saying that it is an investment on a whole another level, and can be considered a tool that aids your presentation. You can still find a good used car that would fulfill the “personal presentation” requirements, but it is understandable if you don’t want to spend too much time looking for one.

So be careful when you are picking a car, whether new or used – figure out its purpose first, then consider the used market as an option.