All The Frugal Ladies Personal finance with a feminine touch
American vehicle sales topped $16.77 million during July of this year. However, this was a decrease compared to June when 17.24 million units were shifted.
According to PRNewswire, the average new light vehicle sold for $36,113 at the tail end of 2017, which is a substantial amount of cash for anyone to part with when buying a new car.
Despite the media being packed full of reasons why you should buy a new car over a used one, buying used is the more frugal and savvy option.
The price of a new vehicle is set to increase
Should President Trump’s proposed auto tariffs come into force, the 25% tariff would raise the cost of America’s best selling vehicles by as much as $5,100.
As a result, the average consumer will pay in excess of $40,000 for a new set of wheels, which is far from a great deal.
However, by heading to your local reputable used dealer, you’ll be able to get your hands on the perfect vehicle for a fraction of the cost.
Shopping around and comparing prices of used vehicles is a must, but once you’ve found one you like, you can haggle to get an even better price.
What you see is what you get
Have you ever been face to face with a salesperson trying to sell you all the latest modcons and extras for your new ride?
Too often, females will say ‘yes’ to these additional extras just to complete the transaction. However, it’s scenarios like this which lead to 70% of buyers regretting their purchase, as revealed in one Autotrader survey.
Furthermore, these extras will rack the final price of your vehicle up by thousands, meaning you’ll be paying even more interest on your finance deal.
With a used vehicle, there are no extras for the salesperson to try to sell you. So, you can rest assured knowing that you’re not going to hinder your budget by making any spur of the moment purchases.
There’s more that can go wrong with new cars
With a used car you expect to deal with wear and tear related issues and these are typically straightforward and fairly low cost to resolve.
However, new cars are packed full of complicated computerized equipment which requires special tools and expert knowledge to put right. According to Extra Mile, the average cost of parts for a 2006 model is $1,098, but for its 2016 counterpart, the cost rockets to $1,398.
This is because modern cars require more complex parts and the repair process is more time-consuming.
Buying a new vehicle can be a daunting process, but knowing whether to select a new or a used vehicle is the first milestone to get over.
As a frugal shopper, buying used is the way forward as used car prices are competitive, there are no optional extras to consider and repairs tend to be straightforward and cheaper.
