what is best ? Used Or New

Driving a bunch of junk cars sometimes doesn't save much money. They can nickel and dime you to death. $300 here. $400 there. $1000 for a tranny rebuild. Having to pay tow bills or AAA membership costs (most new cars have free towing/roadside service). plus the decreased fuel mileage of older cars. The inconvienence/loss of pay of not being able to get to work when your car's dead. Worrying about potentially being stranded. On and on. It adds up.

Case study/some math: person A bought an '04 Kia Rio 4 door sedan with a 10 year powertrain warranty for $9740. If you put $500 down, at 6% and finance the balance for 60 months, your payment will only be $189/month. It averages 30mpg in a combo city/highway scenario. person B owns a '92 Cavalier that gets maybe 20mpg.

Gas cost: if both people average 1200 miles a month, person B will pay $40 more per month for gas (assuming $2/gallon).

Repairs/AAA membership cost: AAA costs about $20/month? Repairs for the '92 Cavalier will run, per year, averaged out, maybe $1000? could be a lot higher or lower. But $1000, or about $83/month.

Resale value: person B's car after 5 years will be worth next to nothing, maybe a few hundred, but person A's car will probably be worth about $2500 or so (after 5 years when it's paid off). So person A will have $2500 in equity built up. extropalted out over the 5 year ownership period, that's worth $42/month.

Analysis: person A is out $189/month but has a nice, clean, dependable, under warranty car to drive and has no worries about it breaking down. and will have about $2500 in equity when the car is 5 years old (or $42/month in value). person B is out $143 a month (when you add up increased fuel costs, AAA, and repairs).........so person B only saves a few bucks a month and has to drive an old car.

Conclusion: brand new economy cars are almost as cheap to own as used cars. Especially if the used car is a larger car that gets a lot less fuel mielage than the new economy car.

Used And New Cars News

Every month, 1000s of cars become government & bank property through various seizure/surplus laws. Because of the constant influx of vehicles and the enormous expense to store them, the cars must be sold fast and cheap! Buy direct from the sources and save considerably! Bids on new and used repossessed and fleet vehicles start as low as $100!

Local Seized Auction
Every month, 1000s of cars become government & bank property through various seizure/surplus laws. Because of the constant influx of vehicles and the enormous expense to store them, the cars must be sold fast and cheap! Buy direct from the sources and save considerably! Bids on new and used repossessed and fleet vehicles start as low as 90% off book value!