Friday, December 22, 2017

If I earn $2000/month would it be better to finance a car that costs 23K-25K or buy a used car and deal with the maintenance costs?

Alan Chenkin, Shade Tree Mechanic, Bicycles, Cars, Boats, and more...

Better is a relative term.
First you have to calculate how much money you have to spend on transportation, including reserves for repairs or maintenance, insurance, titling (registration), etc.
Once you have this amount, and hopefully some money for taxes and a deposit, see what kind of car you need to buy, and what it will cost.
For example, if you are starting a family, you may want a 4 or more-seat sedan. Or a minivan. If you are single, maybe a small two-seater might be more your style. Also consider if you drive a lot; as a business expense, you may be able to buy or lease a newer vehicle with lower mileage on the odometer.
Most important, realize that a car is a depreciating asset. Its value decreases with age, mileage, and condition. If you don’t have to impress anyone, buy the most vehicle you can for the least amount of money. Invest in maintenance, tires, brakes, etc. as the vehicle will hold up better if it is attended to. Neglected vehicles tend to fail more often, and have shorter service lives.
My current vehicle is a 13 year old minivan, with a sunroof and leather interior. starting to show it’s age, but very well maintained, with no note, as I own it outright.
Be smart, don’t overpay, and good luck with whatever you buy!

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This post is from my answer in Quora.


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