I just found out that my car is burning oil through the motor so I started saving for a new car. I am not getting far being a single mom, working and going to school full time. I can't decide whether to go used or buy new.
We needed to purchase a new car for my husband who uses it for business. He puts on an average of 45,000 miles annually. We did not have enough saved to pay cash for the car so I needed to FIND an additional $150 a month for the increased car payment.
I wanted to mention to all Thrifty car buyers to beware of the cost to replace parts on your economical car. I firmly believe the manufacturer does not make money on an economical car you purchase because they make up for the loss through the replacement parts you will need to fix your car.
After I got married, it was time for a second car so that my wife would be able to get out and go take care of things while I am at work. I paid off my car earlier that year so that was $300 extra we had.
I'm not sure if most people know this or not, but this is a tip if you buy your new vehicle from a dealership. Afterwards, send your friends and/or family members to the same dealership and salesman and have them purchase a vehicle.
How do you get a car salesman to give you a fair price? I can NEVER get them to give me more than 500 off the sticker price. And then they add it back with fees or some other generic type charge. They call it paperwork, etc.
When buying a new or used car from a dealer, make a down payment of at least 20%. That will be a enough to cover taxes and most of the vehicles first year depreciation.
Don't buy a new car if you haven't paid off your old one unless you have equity accumulated. One common practice at dealerships is to offer to roll the balance of an existing loan into the financing for a new car.
You can save a bundle on your next car purchase by buying a used car. One of the common concerns I hear from people about used cars is that they will require expensive repairs sooner than new cars. There is no question that repair bills can be outrageously expensive but here's one way to look at it.
