After all, some of the latest models come with all these cool new features like heated steering wheels and massaging seats. What a time to be alive. Because those are so last year. Let an independent auto insurance agent find you the best deal. We get you quotes from all the providers. Get the right coverage at the right price! The choice between a new or used vehicle and how you pay for it could be the difference between riding the highway to wealth and financial independence or spinning your wheels in a rut of debt and endless payments.
But if that new car smell has given you a serious case of car fever, the only prescription is cold, hard numbers. First, safety is always a concern. The truth is that despite all the claims from your friends and neighbors to the contrary, you can find like-new used cars that are just as safe and dependable as a new car—and at a much cheaper price.
You can find like-new used cars that are just as safe and dependable as a new car—and at a much cheaper price. Now for the math. Because the upfront cost of a vehicle isn't going to be the only thing you pay for, and cutting down your base price budget is the most effective way to save money.
That's far more than what most American households can afford. The more you drive your car, the more expensive it will cost to maintain it. With thousands of parts to each vehicle, something will inevitably break, leak or need upgrading, especially after the warranty runs out.
And it's not just maintenance costs: You'll also have to pay for things like gas, interest on financing, insurance , parking and traffic tickets. Furthermore, the thrill of owning a new or "new-ish" used car lasts for only several months, but the pain of paying the same car payment will last for years.
When you buy a car, you lose the opportunity to invest your money into assets that can grow and pay dividends in the future, such as real estate or stocks. The effects of compound interest are more powerful when you save early and often. Spending beyond a realistic budget is like negative compounding. But shortly after, I experienced buyer's remorse. Owning the car was costing me more than I had anticipated, and it was ruining my finances.
The biggest bummer? I later found a two-bedroom, two-bathroom condo facing the park in San Francisco that I really wanted to buy. Christofer Lloyd Aug 10, Search all car deals. Get started with car finance. BuyaCar finance options. PCP finance vs Hire Purchase. How to get the lowest monthly payments. Search all used car deals. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Insurance Car Insurance.
Beyond the sales price, buyers should also budget for other expenses like repairs, registration, and insurance. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.
You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Related Articles. Car Insurance How to Buy a Car. Budgeting Car Shopping: New or Used? Partner Links. Related Terms Loan Estimate A loan estimate is a three-page form that presents home loan information in an easy-to-read, well-explained format, making it easy to compare offers.
What Is Comprehensive Insurance? Comprehensive insurance is car insurance that covers damage to your car from causes other than a collision. Learn about comprehensive insurance costs.
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