Using a Personal Loan for a Used Car
It’s time for a new car. This can be a very exciting time and also a very stressful time in someone’s life. Buying a new car is a milestone in most everyone’s life and the first new car a person buys is a huge step in one’s life. However, it can be a mistake.
Buying brand new is one of the biggest financial losses that a person can make. The second you drive that brand new vehicle off the lot it loses twenty to thirty percent of its original value. If you spend twenty thousand dollars on a brand new car you are losing four thousand dollars the second you start it up to take it home.
Everybody wants to have a brand new car, but by buying a slightly used model you can save thousands of dollars. There is no doubt the feeling that you get from being the first owner of the car of your dreams, but is it worth that money that you are losing through depreciation? That new car smell and the idea of being the first owner is a very intoxicating feeling, but none the less, a mistake in the long run.
Now, if nobody bought new cars then there wouldn’t be new cars to buy. The smart buyer is the one who buys a used late model car and gets the same vehicle for a fraction of the price than that of the new car buyer.
Is this day of age the car market is more competitive than ever. The quality of the cars on the market is at the best that it has ever been. The slightly used car is going to be just as reliable as the brand new purchase of the same model. You actually can get a much better automobile for the same price that someone is paying for a new car. Instead of spending twenty five thousand dollars on a brand new Toyota, your twenty five thousand dollars will get you into a four or five year old Lexus. Your dollar goes a lot further. The manufacture’s warrantee follows the car, plus you can usually purchase additional protection from the dealer for your vehicle.
Taking a personal loan for the purpose of buying a used car give you much more negotiating power when it comes to dealing with the dealership. By having the cash on hand, the dealership haggles with you on the price, rather than having to wait for approval from a bank for a loan on the car.
One cannot argue that buying a brand new car is a great feeling, but so is saving thousands of dollars. Just make sure you get a CarFax report and have a mechanic check out your used car before you buy it. Make sure that all of the maintenance records are available and that the vehicle is in very good shape.
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