WHAT to Buy! Used Cars or New Cars! Why Used Car Dealers are better option than private re-sellers? Are All Used Cars for Sale Safe to Buy?Tips by Satnam-Singh-Sidhu-BC
What to do with Broken Car!
Broken vehicle is never a fun. Especially, if the repair cost is in hundreds or thousands. Minor repairs are normal and are part and parcel of a running vehicle.
Here are few tips to think about replacing your car with a new or used vehicle:
If you have a 4 cylinder DOMESTIC vehicle and mileage is over 100,000 km.
If you have a 4 cylinder JAPANESE or EUROPEAN vehicle and mileage is over 200,000 km
If you have a 6 cylinder DOMESTIC vehicle and mileage is over 200,000 km.
If you have a 6 cylinder JAPANESE or EUROPEAN vehicle and mileage is over 200,000 km.
Normally 8 cylinders engines are powerful and long lasting as long as maintained properly, but transmission, suspension parts and other mechanical parts wear and tear may give you unpleasant driving experience.
Keeping cars, vans, SUVs and trucks beyond these mileage marks may ask for extra cost of maintenance and repair and putting after market parts may reduce the life expectancy and performance of the vehicle.
Trading your vehicle before these mileage limits may get you good value for your vehicle and keep you away from troubles of unexpected failure or break down of your vehicle.
Moreover if you trade your vehicle for new or latest used cars, you may enjoy the new technology and gadgets with interiors equipped with lot of comfort and safety and powerful engines yet compact and economical on fuel. New transmissions are normally better designed and provide smooth ride experience with 5, 6 or 7 speed automatic transmissions.
If your vehicle is still running strong and you may want to get more mileage out of it, there is nothing wrong with it. But keep in mind whether you lease it or buy it or finance it, car looses its value drastically once its warranty is over which is generally 5 years or 100,000 km for most vehicles and 4 years and 80,000 km for European vehicles like BMW, Mercedes Benz.
Once it cross the limit of 200,000 km or 10 years the vehicle generally speaking enters a Lotto Zone, and anybody buying vehicle of you after this are playing a gamble. That is why nobody want to pay you more than 2000 or 3000 for that vehicle no matter how well it is maintained mechanically and look wise.
It is like Lotto ticket. You pay a little price for ticket for big gain but except few winners majority are losers.
Same is the case with vehicles beyond 200,000 km or after 10 years. Buyers want to pay a small amount like a lotto ticket and majority are losers.
They end up spending more money on maintenance and repair and also pay more for gas mileage for a old technology compared to new technology.
If a car is a necessity for your work or family, then you must assign a monthly budget to you vehicle payment and as your income increases you may increase it to higher level. Keep in mind that as long as you need a vehicle you need to assign a monthly payment budget to it.
By doing so you are planning to keep the vehicle for certain time frame and then trade it for better vehicle. Very few people replace their vehicle every one or two years. Some replace after 3 years but majority replace before five years.
That way they get best value for their old vehicle which is still under warranty. No matter how small period of warranty is left, but that gives a peace of mind to the buyer that they are buying a used vehicle which is still under warranty. And just in case it fails right after buying it, then at least they have the luxury to get it fixed under warranty.
Never get emotional and never fall in love with your vehicle for ever. If you do fall in love, keep it controlled and within limit. By doing so you will enjoy your ride every time you go out no matter to work or for a long vacation to a country side or to a remote location. Having a older vehicle may take you you every where you go but some part of yourself and your partners is always worried about the unexpected failure.
I hope it make sense to you. If not don't worry, towing companies and repair shops are awaiting for you. At least to get the economy rolling we do need mechanics and towing companies and their comfy waiting rooms equipped with TV for your convenience to spend your day off at repair shop.
Smart people finance for four to seven years maximum. After that they replace with new vehicle and pass on their troubles to people who like to own the vehicle and not willing to finance it.
It is understood that a brand new vehicle lose its value considerably once it is out of show room. To get around that part you buy buy a pre-owned new vehicle with some mileage on it. You may buy 2013, 2012 and lower depending upon your budget.
Banks have option for financing 2013 and 2012 vehicles for up to seven years to keep your monthly payment low and enable you buy a better car with extra luxury and better brands subject to approval.
2011, 2010, 2009 and 2008 vehicles are eligible for 4 years financing from banks subject to approval.
Keeping your monthly car payment as low as possible is really desirable but normally it is hard. Normally the decent car is affordable for a monthly payment from $200 to $500. To keep your payment further down you may trade-in your vehicle or put a down payment.
Leasing and financing are two popular options for consumers. Don't use your line of credit for buying a vehicle because it is little bit cheaper. You may need it for some emergency funds. Leasing is cheaper but there are lot of strings attached to it.
Leasing gives more control to the Lease company rather than to you. Leasing have so many options like buy-out option at the end of lease and a fair market evaluation at the end of lease period.
Financing also have two options: Variable interest and fixed interest. Variable interest is cheaper but may go up unexpectedly whereas fixed is bit higher interest but give you the luxury to plan your monthly payment at the time of purchase.
Be smart and shop around. Brand new cars and new model cars are similar in reliability and looks but there may be big price difference.
