Should i get a cheaper car

A shiny new car can offer the latest bells and could even come with a warranty and roadside assistance — giving you peace of mind that you may be covered should you be met with certain car troubles.

These offers could help lower the upfront cost, making the car more affordable. For example, some manufacturers offer special promotions on certified pre-owned vehicles if you finance through the dealership. But if you have low credit scores , you might not be eligible for special offers on new or certified pre-owned cars.

One great perk of buying a new car is customization. If you want a specific color, interior or features, you may be able to tailor a vehicle to your liking and then order it through a dealership. Buying a new car might also be the only way to get the latest tech features.

Think lane-change warnings, adaptive cruise control or even built-in software that can alert you when someone like your teenager is speeding or driving without a seatbelt. New vehicles often come with a bumper-to-bumper and powertrain warranty, along with roadside assistance.

These warranties can help assure buyers that qualified repairs may be covered. Certified pre-owned cars purchased through a new car dealership may also come with an extended factory warranty. In contrast, if you buy a used car, you might want to start a repair fund. For example, normal wear and tear will have you buying new tires or brake pads, which may not be covered by a warranty. Depending on the mileage, a used car could require costly maintenance or repairs.

The initial steps in buying a used or new car are similar. You set a budget, identify potential makes and models within your price range and do some pricing research. If you want something specific, like a certain color or features, it might take a while to find the right car.

All stakeholders —the dealer, the lender, and you—can minimize damage if you diagnose the condition quickly and act on it swiftly. Kelley Blue Book. Auto Loans. Car Insurance. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.

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Alternatives to Lease-Swapping. The Bottom Line. Key Takeaways Unexpected financial situations may affect your ability to make car payments, putting you at risk for repossession.

If you financed a vehicle purchase through the dealer, they may have specific rules about when you can and can't return a car. Leasing agreements may include clauses for returning a vehicle early, though you may pay a penalty to do so. Returning a car you financed may have negative impacts on your credit score. Note Lemon laws are different in every state so if you're attempting to return a vehicle on the grounds that it's a lemon, be aware of what time limits may apply for doing so.

Tip Ask about any penalties or fees you may have to pay for voluntary repossession and how it will be reported to the credit bureaus. Tip Consider using an online car loan refinancing calculator to estimate your potential savings with a new loan.

Important Read your loan agreement carefully to determine whether your lender allows for someone else to take over loan payments. Article Sources. Investopedia requires writers to use primary sources to support their work.

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Understanding Down Payments A down payment is a sum of money the buyer pays at the outset of a large transaction, such as for a home or car, often before financing the rest. Closed-End Lease A closed-end lease is a type of rental agreement that does not require the lessee to purchase the asset at the end of the lease.

What Is Comprehensive Insurance? Comprehensive insurance is car insurance that covers damage to your car from causes other than a collision. Learn about comprehensive insurance costs. Introduction to Auto Insurance Auto insurance is purchased by vehicle owners to mitigate costs associated with getting into an auto accident.

Not just because of money, but also because I like driving the small hatchback a lot more! I drive k year, though I hope to cut that down going forward. Sometimes people make bad decisions and try really hard to justify them. They even try to convince other people to make the same bad decisions so that they feel better about their bad decision.

This is the case with buying a new car. I've also seen it with people who spend too much on a wedding or an engagement ring, or who eat unhealthy and can't lose the weight and try to convince everyone that losing weight is impossible.

It's hard to admit when you've made a gigantic big mistake like buying a new car. Keeping the car for a very long time doesn't change the decision, it just turns your new car into a used car. By the time you've owned it for 5 years, it's as if you just went out and bought a typical used car.

At that point you won't have to feel bad about your decision any more, it's water under the bridge. Keep it for 10 years and it's as if you went out and bought an old used car.

Now it's as if you were a savvy used car shopper, and your past mistakes are far behind you. But what if you just went out and bought a 10 year old used car in the first place? Holy shit would you be a savvy financial wizard then! Used car shopping isn't easy. Easier than most people make it out to be, but not easy. You have to do your research, walk away from lousy deals, test drive a lot of cars in random parts of town.

But the return on investment is huge. Quote from: Rage on September 03, , AM. After running the numbers, I'm basically in agreement with Rage. I make a 6-figure income, so it wouldn't break us either way, but I look at the new car purchase as a mistake to be learned from and corrected.

I'm pretty good mechanically and at picking out cars, so not too worried about lemons. I'm going to talk through it with the Mrs. Hopefully this isn't the wife reading this right now. If that is you, hi Pumpkin - I love you! Here are my pitch points I'm using tonight on why selling is the right choice, in no particular order Peg is the name of the Prius We drive far too little for the mileage difference to be worth it.

Upon further research, 1. Much cheaper insurance - new cars are more expensive to insure and we can get rid of collision insurance. What should we do with it?

Just my starting idea. We can get a used Subaru with 4 wheel drive that kicks ass in the Winter and is extremely safe, still excellent mileage, more space, better stereo than the stupid Toyota Entune, etc.. I see no reason that we need to be so attached to Peg. Wish me luck! Here is a fourth way and a long term strategy-- Look into obtaining a dealers license in your state.

Some states are expensive and require a weeks long class. So you buy a car to add to your Prius. Sell it at your leisure.

Do this 3 or 4 times per year for 10K in profits. Your hours for a year at this rate might be It would also cut your FIRE time in half as you could continue the practice post retirement. I know this is a bigger picture view but it is something to seriously consider. Essentially free transportation for life. Plus a moderate income from the hobby.

Great idea Bob, but looks like the requirements here in Wisconsin are pretty extensive, including a permanent, non-residence business location with a display lot. Just thought I'd close the loop on this sucker. No regrets. The Subaru is great and will hopefully last a long time. Selling any car is a pain in the ass, but selling a relatively new car with a lien on it is a bona fide festering hemorrhoid paperwork, title transferring, dealing with banks