Are You Prepared for the Death of Your Car?
Joseph Feibel – January 16, 2018
Some day, if you keep it long enough, your car not is going run any more. How much are you saving each month right now to prepare for that moment? It’s best if you have the money to pay cash for a used vehicle so you don’t end up with debt. Regardless, you are better off buying a used car than a new car even if you have to finance it. For most of us, a car is a big purchase that forces us into debt. I bought a new car several years ago and I can tell you I’ve owe more than it’s worth right now even though I got great financing; it is the depreciation of new car the first few years that is the killer. I didn’t have a chance from the moment I drove off the lot.
So here’s any idea, start a car savings account so when the time comes you will be ready to make a deal on a used car. If you are able to buy from a private seller you will be able to get a better price than at a dealer such as CarMax,though you may opt to pay more and purchase from the dealer.
Another idea is to keep your existing vehicle as a fall back in case you need it rather than selling it or trading it in. If your main car breaks down or otherwise needs to go into the shop you’re not without transportation. Also, with older cars, five years or older, you can save money on insurance by not paying for collision insurance coverage.
Try to buy a used car that is at least three years old, four or five years old is even better. At three-year point, the car has taken the biggest hit on depreciation. Any even if you need to get repairs along the way after buying a used car you are better off doing that than dropping $20-30K on a new car. I’ve seen suggestions to look for cars with about 60K miles on them. Younger cars with 60K miles are likely to be highway miles which are easier miles on the car. If you buy a Japanese car with this many miles on it, you could still a lot of life left on it. Toyota Camry seems like a really good candidate for a used car as are many are the other Japanese cars. Korean cars are so much better dependability than the once were. I know of a Hyundai Sonata with over 180K miles on it that is still going.
Here is a free website where you can look up make, model, and year of any type of automobile: