Posts with keyword new-car→
Making a list
(This is the 4th post of the 8-part series An investing-friendly car buying guide.)
You want to buy a used car (why? because of this and this), and have a budget of $10,000. Which one car, among the several hundreds of different types out there, should you choose? For the sake of this discussion, we narrow the field down to the 4-door sedan cars in mid-sized segments. (Everything said here holds for most other types of cars as well.)
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Why should I buy a used car?
(This is the 2nd post of the 8-part series An investing-friendly car buying guide.)
We have seen in the last post how depreciation eats away at the asset value of a car. Still, there are surely other benefits of owning a new car? Let us start with the obvious one.
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A close look at car depreciation
(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 falling of the value of your car as time progresses, 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.
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An investing-friendly car buying guide
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.
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