Save Big With Used Cars
Monday, November 3rd, 2008We all have heard the old story about how driving a new car off the lot will cause the car to loose 2/3rds of its value instantly. Pretty much all people know this, but they still get new cars. If people understood that depreciation will actually cost you more over the life of the car than the gas will, people might behave differently.
Let me tell you a story. I drive a 1990 Honda Accord with over 200,000 miles on it. It cost me $1700 six years ago when I bought it, and I've been driving it ever since. It fuel efficient, is big enough for most of my needs, and as been generally reliable all things considered.
Of course, I've had to put in a few repairs here and there. I've installed a new alternator, replaced brake pads, and swapped out old leaky coolant hoses. On the whole, though, I've probably put only $800 into the car over the years (not including gas, of course).
My insurance is cheap. Since the car is so old, I don’t need comprehensive and collision insurance, which save me a lot on my monthly premiums. On the whole, this car is amazingly cheap. Is it fancy? Heck no, but it does it job while letting me spend my money on more important things.