- Posted May 27, 2014 by
Buying used can help you save more
According to a recent report from Forbes, now is a great time to purchase a car, especially if you are looking for a late model pre-owned vehicle. Loan rates have fallen around 10 percent in the last two years, and seem to be keeping stable.
With the average age of a car in the U.S. clocking in at 11.4 years, it is clear that modern cars are much more reliable than cars of the past. Long gone are the days of trading your old car in for a new one every 3 to 5 years. Forbes recommends purchasing your car and keeping it for up to 10 years, rather than leasing.
Credit unions and car dealers are currently offering competitive rates on car loans, which can have over 40 percent lower rates when compared with traditional banks. It is a good idea to take a look at all of your options and find out what is the best value in regards to your budget.
Buying a used car can be a smarter choice than buying new due to the initial depreciation. A car a year or two old will save you thousands of dollars and will last roughly the same amount of time as a new one if you maintain it properly. The experts at Forbes suggest putting the money your save in monthly payments into a diversified stock fund, which can net you $35,000 over 10 years, versus going towards depreciation.