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Old cars are great - I bought my current car (1987 Nissan) 5 years ago for $450 - it needed 4 new tires and a brake job - total cost for that was a little over a $1000 - so I got a car for $1500. My insurance is a little less than $30 a month and my state offers a 5 year registration for older vehicles at just $69 for 5 years (It used to be only 2 years but they changed that).
During the past 5 years, I have had only 3 major repairs (between $500 - $1000) plus regular maintainence - tires, alignment, batteries, oil changes). But if you average out the cost of ALL of my maintainence - it is less than $800 a year - You cannot get a new car with payments that low and the insurance and registration savings are also huge.
To handle the major repairs - I set aside $100 a month (less than a new car payment) and when it is needed I have money for repairs or even buying another used car.
I would also like to point out, that in 5 years I have only missed work or been late for work ONE day. How many people with newer vehicles can say that!
Purchasing a second hand car has lot of Benefits. You can save money on car, car insurance, Sales tax and registration fees. Used cars loans are simpler and easily available.
I buy new cars or newer used cars that still are under warranty. The dealer will give me a loaner car whenever the car needs repairs. Rental cars are very expensive so this is a big bonus. I have to have a car at all times in order to get to work.
I am a doctor, and my colleagues tease me no end about the fact that I buy only used cars.
One cardiologist was upset that his new Mercedes needed a new engine just after the warranty expired. hahahahaha You're right about the savings.
But there's more. If you finance your car, the balance on a loan for a new car is usually always more than the value of the car. If your car is totaled, you'll still owe money. On the other hand, the loan balance on a used car is always less than the value of the car. So it's totaled. So what. Save your worry for something important.
If you look up my advice on how to buy a used car, you'll see you buy it from the makes' dealer (they have mechanics on salary), and write into the deal you have three days to have your mechanic check it. Whatever you find, the selling dealer must fix it, or it's no deal. Believe it or not, they will.
Buying used is different from buying new, but when I saw how much I saved (meaning afford even more car), I knew I'd never buy new again.
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