Written by Joseph Perry on July 6, 2010.
Conventional wisdom has always taught us that springing for a new car instead of a slightly used car was a financial mistake. In fact, I’ve written about what you need to know before buying your next car and buying used over new was one of my key points. The reason is that cars are depreciating assets and it isn’t uncommon for a new car to lose anywhere from 10-20 percent of its value in the first year. So, if a savvy consumer is shopping for a car it often makes sense to get a used model about a year old with low miles. This way the original owner takes the greatest depreciation hit while they get an almost new car still covered under warranty.
Well, the economy has changed the game for many makes and models and in some cases you can actually buy a new car for less than the same car used. New data from Comerica Bank’s Auto Affordability Index shows that new cars are now the most affordable they’ve been since records started being kept in 1979. In fact
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Written by Scott Barnes on June 29, 2010.
Purchasing a car is often the 2nd most expensive purchase that a person will make in their lifetime, behind purchasing a home. So it stands to reason that you will want to get the most value possible out of that car payment. There are some financial rules that you can follow to get the most value out of the money that you are spending for your car payment.
Buy Used
The highest rate of depreciation for a car occurs when a brand new car is purchased and driven off of the lot, typically around 20% of the value of the car In order to avoid this immediate and dramatic drop in the value of your vehicle, you may want to consider purchasing a certified used car from the auto dealer. These cars are generally lease returns from people that trade in their cars every couple of years and are inspected for major defects before the cars are resold by the dealer. These vehicles are typically under warranty for the beginning of the payment turn and can be a great value for individuals that are not concerned about the car that they are driving being a status symbol.
Keep The Car As Long As Possible
The cars built today are built to last for much longer than their predecessors. With regular maintenance and inspections, a car purchased today could last for 10 years or more with minimal repairs. As most car payment terms are for 48 month intervals, a person can be free of a car payment and still have a great car to drive for 6 years before they would need to look for a replacement. Training yourself to choose vehicles that you intend to keep for a long period of time can save you tens of thousands of dollars over your lifetime.
Limit Car Payments To 10% Of Income
Although cars are an expensive purchase, nearly everyone is able to find a car that they can afford if they limit the amount of the monthly car payment to 10% of their take home pay. If the car that you are looking at will require a payment of more than 10% of your income, you should consider other options, such as an older model vehicle, a smaller vehicle, or a vehicle from a different manufacturer. This allows you to have more of your pay available for other needs and reduces the chance that a hiccup in your finances will result in the vehicle being repossessed.
Written by Joseph Perry on May 23, 2010.
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Do you need insurance? You need to take many things into account when looking at insurance. Do you need health insurance? Maybe you are looking for home or car insurance. Perhaps you are thinking about life insurance. All of these are possible with Aig Insurance. The company has been in business since 1919. There are only three companies larger, in the world. If you need insurance for your car, you might wish to consider Aig.
Everyone needs auto insurance today. However, all car insurance policies are not the same. With Aig, you receive their Security Advantage Plan. This is free of charge with your coverage. All of the conveniences and benefits are included. There are three major components. Identity Theft Restoration Service is one. The next thing you get is 24 hour roadside assistance. You also receive around the clock travel and emergency medical information.
Help when stranded
Roadside assistance will be there when you need it.
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