When buying a vehicle, most of us turn to used cars due to their cost and ease of obtaining. We simply walk down to the local car dealership, test out a car we like the look of, and we can usually drive away on the same day after managing the financial component. However, there will come a point where you’ll regret your decision to buy a used car and it could start costing you more to maintain and run than a new vehicle bought directly from the manufacturer.
If you’re thinking of buying a budget car because you assume it’s a wise and frugal purchase, then here are a couple of considerations to think about before you decide to take the plunge.
Resale Value
If you’re currently driving an old vehicle that’s rapidly losing value, consider a cash for cars service and sell your vehicle as soon as possible. New cars diminish in value quickly during the first year, but after that, they generally settle down and stop losing value for the next few years. However, if you have a vehicle that’s several years old that was bought pre-owned, then it’s going to rapidly lower in resale value the longer you use it and the more miles it clocks up. This makes it difficult to switch your car in the future or upgrade it, making it more worthwhile to simply buy a new car for better reliability and future resale value.
Fuel Economy
Vehicles such as the Toyota Prius have shown that fuel efficiency is something that can be taken seriously. With an average of 56-MPG, it’s clear that if you want to cut down on fuel costs then you need to invest in a new vehicle with better fuel management, or hybrid cars that can use electricity as well. Older cars are simply less efficient in the long run and will cost you a fortune just to operate. If you’re going to invest in a new car and you want to be frugal, then consider buying a hybrid or electric car in order to be environmentally friendly yet still have a reliable vehicle that can get you from A to B. It will save you a lot of money in the long run, and considering your car should be thought of as a long-term investment, it makes sense to pay more upfront.
Repair Costs
Older vehicles are more costly to maintain due to their unique parts or older engines that are probably hard to source. Not only that, but some mechanics (especially new ones) might not have the resources, tools or parts available to help you repair a vehicle that’s more than a decade old. Anything with moving parts will generally start to fail over time, and your car is no exception even if it’s been well-maintained and taken to the garage many times in the past. Your car will eventually start to fail, the parts will be harder to source, and sooner or later every moving part in your car will have been replaced with something new. So next time you’re thinking about getting something flashy like a pre-owned Mustang, consider the costs of repairing it and consult your local garages first.
