Posts with keyword depreciation→

Consumer Reports magazine recently suggested that driving the same car for at least 15 years can save you almost $31,000. That is a nice little sum to boost your retirement savings, or send your kid to a better college. The key points to note are:
Continue >>

(This is the 3^rd post of the 8-part series An investing-friendly car buying guide.)

So you are going to buy a used car. Great! You have made a smart decision. The next step is to pick a budget – how much you want to pay for your car. This step is important, because your choice will decide how old a car you are going to get. From the depreciation graph, tweaking the budget by a couple of thousand dollars can mean getting a car that is few years newer or older.
Continue >>

(This is the first post of the 8-part series An investing-friendly car buying guide.)

Let us look into car depreciation more closely. Depreciation, as we all know, means gradual decline of the value of your car as time passes, due mostly to wear and tear. New car dealers do not want to talk about it, and new car buyers certainly do not want to think about it. On the other hand, those of you who want to buy a used car can get good benefit out of it.
Continue >>

There is an important difference between the two biggest single expenses in your life (if you live in America): buying a car, and making down-payment for a house. While a house appreciates in value (price goes up with time, usually outpacing inflation), the value of a new car starts depreciating the moment it leaves the dealership lot. Thus, paying 20% down for a house (the median house price was $232,000 last year) is a sound investment, whereas forking out $20,000 for a family car is not necessarily so.
Continue >>

• Browse by keyword

  asset allocation bond bull market buy and hold CD CPI demand supply depreciation diversification DOW efficient market FDIC fixed income fundamental analysis globalization harden wordpress household sector index fund Inflation interest rate Investing investing book market timing money market NASDAQ neuroeconomics new car psychology Random walk down Wall Street retirement risk S&P 500 saving security stock Stock Market stock picking T bill used car value investing variable income VIN warranty Warren Buffett wordpress