How to Improve Our Finances By Buying Used Cars?
Posted on January 25, 2016
There are many well-to-do businessmen in the market and the reality is; they perform various financial efficiency efforts to avoid spending too much money. As an example, we know that many of them never buy a new car. It is true that cars are essential for any family; but buying used cars are actually a part of the whole wealth planning strategy. Even if they are already wealthy and retired comfortably; they may still drive used cards. If we want to gather enough wealth; it is important to know the real meaning of depreciation. In fact, we should know that our car’s value will drop significantly once we sign the purchase contract and drive it off the lot.
If we want to become a successful businessman, it is important to implement acceptable money-saving habits. In this case, we should purchase used products, if their value depreciate very easily. Car’s value depreciates steadily, so it is important to purchase it in cash. Quality artworks, real estate and some stocks have increased values; so we should focus our spending on these items instead. It is acceptable to borrow money for items that consistently increase in values. Used cars may not have the wonderful new car scent and low mileage; but we will save a lot of money.
Even if we purchase used cars; it is important for us to consider the proper financing options. There are options that should make sense in our current situations. Whether you are leasing, financing or paying cash; we should make sure that whatever method we choose; it should help us improve the overall strategy in our money management efforts. As an example, some people can be affected by poor credit history records; due to something that they can resist; such as natural disasters, divorce, business failures and others. With proper strategy, financing a car loan could actually help us repair our damaged credit.
It makes senses to work only with reputable car dealership who really can help us repair our credit records. If we want much smaller and manageable monthly payments; we should provide sizable down payment. This is another thing that we can do to rebuild our credit. In this case, we should know our budget and have clarity on things that we can afford. We should make sure that we are cleared for financing before we go shopping. At least a couple years before we plan to purchase a used car; we should start save up enough money; even if it is only $100 each month.
When choosing used cars; we shouldn’t choose specific make and model. Instead; we need to check our budget and choose the best make and model. In this case, we should be quite flexible. It is important that we purchase used cars from reputable dealers. When we choose used cars, it should have relatively low mileage; preferably under 60,000 km. We should test drive the car and make sure we really love it. There are many things that we should check with used cars.