New or Second hand? Which is the best option for your ‘new’ car?

Other than when you buy a house, your car is probably the most expensive thing that you will buy. You probably won’t just buy one in your lifetime so it’s important to make an informed decision.

I love buying nice cars, but I know that it’s important to be realistic about my finances and be responsible. Taking everything in to account I have come to the conclusion that buying an expensive new car is actually an unnecessary expense.

Of course there are plenty of overpriced used cars and huge bargains on new cars, but it’s not just the price that makes me think a new car is waste of money. You have to take in to consideration the fees that come with it, plus the subsequent costs and the instant loss in value as soon as you drive it off the lot.

You don’t have to sacrifice quality if you buy a second hand car wisely. If you go for a car that’s around 1-2 years old, has around 30,000 on the clock, you’ll be able to keep a lot of cash in your pocket and get a great quality car.

Here are 3 benefits of buying a second hand car (in nearly new condition) instead of a new car from a dealer.

Second hand cars: Cheaper price, less depreciation

I mentioned before that you lose a few thousand dollars as soon as you drive that car off the lot, some people think that’s a myth but it is in fact very true. That’s what makes used cars an absolute bargain. Just think about this – You can now buy a 2007 Porsche, which cost $50,000 new for only $25,000. Would you like to be the new owner that paid all the fees and lost $25,000, or the second owner who saved a lot of cash?

The tax on new cars

When every you see an ad on the tv for the latest car on the market you will never be told about the sales tax that many states have on new cars – these taxes do not apply to used cars. In many states if you buy a second hand car from a private seller, you will not have to pay a single dollar in sales tax. The sales tax that dealers add to the price of a car can increase the price by thousands of dollars. Make sure you research the laws before you make a final decision.

Unnecessary extras on new cars, Get the features for free on used cars

The oldest trick out there in the world of car sales is when the dealers will upsell the customer by adding on so many unwanted extras, you just get caught up in the moment and a good salesman knows how to exploit that. If you are searching for a used car you can find one that has exactly what you need such as a sat nav or sunroof. You will pay a lot less for the features than the owner did originally.