How To Shop For A Used Car |
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Winston Takeda
12 August 2012
Many people are trying many different ways to save money these days. Even people that are incredibly wealth, and in the top one percent, got there by being frugal with their money. A surprising thing about the people interviewed for the famous book, "The Millionaire Next Door," was that most of them never bought a new car. Most people who are next to broke seemingly have to have a new car every three or four years. But the truth is that some cars hold onto their value for a long time.
This is because they are good vehicles. Sure, it would be nice to always have the latest, flashy vehicle on the block, but if you're trying to save money, not having a huge car payment every month can be a blessing. Depending on your lifestyle and where you live, some car payments can be more than your rent. But when you buy a used car, especially for cash, you'll never have a car payment.
Another benefit to buying a used car is that the insurance will be cheaper. Insurance premiums for new cars are sometimes through the roof, not in part because of the cost it will take to replace them. But with a used car? Forget about it! You'll spend more on lunch every day!
Now that you're thoroughly convinced that buying a new car is for economically illiterate fools, and buying a used car is the smart choice for a savvy financial wizard like yourself, how do you choose which one is best?
Resale value can tell you a lot. The marketplace is filled with amazing amounts of information. Cars that lose their resale value usually do so for a reason. Cars that hold their value, on the other hand, usually do so because they have a track record of lasting a long time, with only the basic service requirements.
Any Japanese car made between 1995 and 2005 is going to be a good deal. It's old enough so it's affordable, but it's still got plenty of miles left on it. Toyotas and Hondas are generally considered the best. Lately, Korea has been making some quality vehicles, but they haven't been on the market long enough to fall into the affordable used category.
Honda Civic, Honda Accord, and Honda Prelude are usually good choices. They haven't had any major issues over the years, and they are consistently top notch. The Toyota Tercel and Toyota Corolla are also excellent values. For a long time, the Toyota Corolla has been the top selling car in America. You don't get this status without consistently producing quality products.
So there you have it. Your rough guide for getting a cheap used car that will last you a long time. Happy shopping.