Buying Cars New or Used ?

Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer “new”.

Still like any journey, with the right guide to buying a car, one can breeze through the experience with flying colors. Below is a guide to getting better car buying deals not only in terms of getting high quality cars but also in being aware of rebates and discounts. Both online and offline transactions were mentioned and discussed as some people are already doing their shopping online.

Read on and see for yourself which car buying guide you already know and which one you just heard for the very first time.

Car buying guide #1: List your requirements and stick to it.

Knowing what you need and what you want already takes you halfway the decision-making process. List your requirements and search for a perfect match out of the hundreds of car models available. You can do this in the old fashion way by visiting the car dealers near your area or the new age way through the wonders of the World Wide Web. One car buying guide which you should remember is to never go to dealers without having a car in mind. Websites like CarDirect.com has a handy research tool that can help you refine your search

Car buying guide #2: Have a budget and stick to it.

When you have already decided on your car model, you can now look into the prices being offered by various car dealers. One car buying guide that is really important is to do price comparisons, which are available online at InvoiceDealers.com or CarsDirect. You can also ask advice from people who have bought cars in the last five years. Chances are, car dealers still have the same practices.

Car buying guide #3: Be on the look out for special sales and promos

Most car dealers and even websites will always come up with a promo or a special deal guaranteed to outsell the competition. You can also leave your contact details and ask the car dealers that you have visited to inform you of upcoming promos. That way, you will stay up to date and would be able to compare different deals offered by different companies. One can also try looking for great deals over the Internet. Some websites like " Auto Info Online " can also give you a lot of information towards buying a car.

New vs used. Which car is right for you? Consider the following.

Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer “new”.

New cars lose about 40% of their value within 3 years, then depreciation starts to slow down. Why not buy a used car and allow someone else to take that depreciation hit?

The previous owner will have absorbed the steepest part of the depreciation cycle. At that point the costs of owning and operating the car will be reduced. The money you save on depreciation will surely go a long way.

Another benefit of buying used is lower cost. By buying used you pay less. You will also save on financing costs, insurance premiums, registration and licensing fees. You don’t have to worry about paying sales tax.

As with everything else there are a few downsides to buying a used car. There are greater chances for costly unwarranted repairs. You may very soon have to do major maintenance on your car, including replacing tires, battery, brakes, muffler, and perhaps even the transmission.

A used car is usually less reliable. You don’t know exactly what you’re getting into and how the previous owner treated the car. However, every situation is different and some used models may actually be far more reliable than some new ones.

If you can pay cash, go the new car way. Enjoy the feeling of knowing you're the original owner of a new car in mint condition. Nothing can replace that feeling.

Otherwise do not hang your hat higher than you can reach. Practice financial prudence. Save your money and comfort yourself knowing that one day you will be able to afford that dream car. One day when money is no object.

About the author:
Ron Dutta (AutoInfoOnline.Com)