Buying a Car
By
R.D. Swartz
If you are in need of a car ask yourself will I keep this car for ten or more years? If so a new car is an option for you but is still a losing proposition. If I asked you to invest 25,000 dollars in an investment guaranteed to lose 30 percent on the first day and 90 percent over ten years you would never give me a dime of your money. That is exactly the situation in buying a new car you will get to drive a new car but the financial investment is pitiful.
Also you need to consider the much higher insurance on a new car than a used one as well as the interest rate of you loan. Altogether the investment for a new 25,000 car over buying a used 5,000 car is a no brainer you will lose massively on the new car financially compared to the used car with its much lower insurance costs and possibly no interest rate if it is paid for in cash.
It is so nice to have a new car that works great and is under warranty. It is much nicer to have financial security and money in the bank and those who buy used cars every five years compared to those who buy new cars every five years have lots more money in the bank. At the end of the day all cars are temporary until they cannot be driven then they are useless, so why invest more money into a financial losing battle then you need to?
Finding a good car mechanic to help keep your used car going and occasionally having to rent a car while you used car is in the shop is a small price to pay then compared to 500 to a 1000 dollars a month going out for that shinny new car and its insurance bill. If it gets me to where I need to go and the air-conditioning, heat and CD player works I’m happy. I will drive my used cars all the way to the bank to watch my savings grow.
