The desire to become free of debt is a goal for a growing number of American families. For some, it is a necessary goal to relieve the strain of crippling debt. For others, becoming debt-free makes it easier to move ahead on the path of life, such as when preparing to become a parent, buy a home, retire, or start a new business.
According to recent statistics released by the Federal Reserve Bank of New York, 43 percent of adults in the United States are currently paying on a car loan. This sizable figure helps illustrate why it is important to search for ways to pay off existing debt, even that associated with the purchase of a car. The following information can help consumers understand the benefits of choosing a used car, instead of a new one when they want to rid themselves and their households of debt.
Used cars are less expensive to own
The costs of owning a new car can really add up. Personal property taxes, sales taxes, licenses, permits, and even full-coverage car insurance is more costly for a new vehicle than a comparably sized and equipped pre-owned model. In contrast, the purchase of a used car will result in a much smaller bill for sales tax at the time of purchase, and the amount of the monthly car insurance premium can also be much cheaper.
To save even more money when purchasing a used car and eliminate the need for future car loans, consider purchasing an inexpensive used car for cash. Each month you can use the money you are not spending on a car payment to fund a budget line for replacing the used car with a newer one when needed. Additionally, if the used car you purchase is an older one and you are maintaining your own fund to replace it, you may choose to buy only the required car insurance, which is often much cheaper than full coverage.
Used cars are less expensive to drive
In addition to the increased costs of purchasing and owning a new car, they can also be much more costly to drive. New cars, especially high-performance models may require special maintenance or more expensive replacement parts, such as special tires and batteries.
For even more reasons to consider a used car, instead of a new one for your next vehicle purchase, take time to visit a reputable used car dealership in your area. By discussing your situation and goals in detail, your trusted used car dealer can help you find and purchase a dependable car that fits both your needs and budget.