Alamy The decision to shouldn't be just about finding your favorite shade of blue and driving it home. There are a variety of factors to consider: How much do you want to spend? Do you need a warranty? Can you pay cash or need financing to seal the deal? But first, you need to decide on one of the most important issues related to your car purchase -– should you buy new or ?
Everyone loves that new car smell. Then there's the way the interior has been carefully covered with plastic. The stickers still on the windows. The odometer that reads zero. And a smooth-talking sales person can convince you that you can without a shadow of a doubt.
But with all the talk of low monthly payments and cash back, there are a few things your crafty salesman or woman won't tell you. And unfortunately, those tiny gems of information are perhaps the most important things you should know. You know the saying, "The devil is in the details?"
1. New Cars ! Face Instant Depreciation
A growing body of research shows that a new car may not be the best way to spend your hard-earned cash. According to Edmunds.com, your new car could lose as much as 9 percent of its value . That means your new $30,000 ride might be worth as little as $27,300 by the time you get it home to show your spouse. And one year later? Your car might now be worth as little as 81 percent of what you paid for it or $24,300.
The news only gets worse from there: Your car is worth as little as 40 percent of its retail price five years after you buy it.
2. New Cars Bring Higher Costs
Your monthly payment isn't the only way a new car will assault your wallet. People forget that new cars (especially those with a loan) sometimes require higher levels of collision and liability coverage. The manufacturer suggested retail price also weighs heavily on the overall costs to insure it. What this means is that a new, expensi! ve car might cost significantly more to insure than an older, ! used model.
But that's not all. Depending on where you live, the cost of license plates and vehicle registration are often commensurate with the retail value of your vehicle. In other words, your expensive new car will cause you to pay more for the privilege of parking on the street – sometimes a necessity if you live in a large city.
3. Buying a Used Car Offers Psychological Benefits
So now you know you'll likely save some cash by buying used instead of new, but what about the ?
Sure, you might feel slightly deflated when you drive off the lot with a used car instead of new. However, you might also feel a psychological boost from not having to worry too much about the upkeep of a brand new car.
Think about it. As we all know, life happens. That sweet little old lady at the grocery store is bound to slam her cart into whatever you're driving at a certain point. And we all know what birds do. In our complicated world, not havi! ng to stress over the elements or a little ding here or there is worth something.
The bottom line: It's your car and your decision, but it's important to understand what having a new car really means. Of course, it feels good to buy something new and show your friends and neighbors that you're doing well, but that new-car smell might cost far more than you ever realized.
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"August is a traditional month when next year's models are rolled out, and the rush to sell last year's inventory heats up," says John Ganotis, founder of CreditCardInsider.com. "For instance, General Motors (GM) promoted Chevrolet sales with a 'Love It or Return It' campaign that allowed customers to return new cars within 60 days of purchase. GM's no-haggle equivalent was called 'Total Confidence Pricing.' Cars were offered at about the same price GM gave its employees." Ganotis says that consumers can expect these and similar programs and specials this month.
1. Cars -
Whether you're shopping for a pre-K or collegiate living, back to school sales are your best friend. "Many stores have already cut prices on supplies by up to 30 percent and are offering [buy one, get one] deals now," says DealScience.com, which delivers shopping intelligence. "Department stores like Kohl's (KSS) and Target (TGT), and office supply stores like Office Depot (ODP) and Staples (SPLS), are among those that have great seasonal savings." DealScience says some of the best savings on back to school goods are at office supply stores. Shop online for the best prices.
2. Back to school supplies -
If you live where it stays hot, now's the time to take advantage of summer clearance sales. Of course, you can shop for next summer's wardrobe, too. Expect to find deals on sandals, tanks, swimwear, shorts and airy maxi dresses both online and at brick and mortar stores.
3. Summer clothes -
If you live in a cooler climate and buying summer duds at this time of year doesn't appeal, don't fret. Loads of retailers start fall promotions at the end of July and run them for several months. "Stores like Lucky Brand, Levi's and Lee offer up to 80 percent off before the summer is even over, so now is the time to purchase that new pair of jeans," says DealScience. "Gap (GPS) and Old Navy often cut prices on school styles by 40 percent." Check for specials on outerwear, boots, scarves, cardigans, denim and even belts.
4. Fall clothes -
According to DealNews.com, mainstream laptops are at rock bottom prices. The site says you can find a notebook for under $400 "with a 15" to 16" screen, at least 4GB of RAM, at least a 500GB hard drive, and Intel's (INTC) Haswell Core i5 processor, which is the company's mainstream chip capable of handling everything from HD movie streaming to casual gaming."
5. Mainstream laptops -
"Last month, brand-name 42" LCD HDTVs hit their lowest price of the year, coming in at an impressive $299, which is roughly $40 under 2014's average for this size category," reports DealNews. "Meanwhile, off-brand models of the same size, such as those from Insignia, Sceptre and Sanyo, hit $250, which is the best price we've seen all year for this category." The site says prices will continue to drop in August and -- perhaps -- through November.
6. 42-inch LCD TVs -
Linens are a hot buy for both dorm-dwellers and newlyweds. With an uptick in both come August, retailers have blankets, sheets, pillows, shams, duvets, towels and washcloths marked down.
7. Linens -
Wine grapes are typically harvested in early through late fall, which means that wineries all over the world are putting last year's bottles on sale to make room for the new stuff. Subscribe to your local wineries' newsletters and Facebook pages to stay up to date on specials. Wineries, grocers and major retailers often provide a discount when you buy at least six bottles at a time.
8. Wine - More from DailyFinance:
Source : http://www.dailyfinance.com/2014/08/03/3reasons-buy-used-car/
