So you finally decided to get yourself a car. You got tired of always having to wait for your elder siblings just to get a ride. Or you probably don’t want to take the bus every time.
Everyone of us surely have a clear picture of our ideal cars. It could be a red, shiny sports car. Or may a big, four-wheel drive SUV. Some even dream of more luxurious cars with an impeccable interior. Almost everybody dreams of driving around town with a new car of the latest model.
Buying a car is definitely an exciting time, but it shouldn’t drive you into making impulsive decisions. When buying a car, image is not always the priority. There are several considerations, such as suitability and of course, the price. What’s the use of a brand new car when you won’t even be capable of paying for the gas after the sale? In the end, everything boils down to how much the car would cost you.
Though new cars are almost problem-free and you usually won’t have to pay additional for car services, it poses a great financial risk. You won’t know how much it’ll be worth a few years from now. If you got a car through a loan, you might still be paying it off even if it frequently breaks down.
It would be better to buy previously owned cars instead. The previous owner would have already absorbed about half of its market value, due to depreciation. A car loses around 40% of its value to depreciation withing two to three years. You’ll surely save a lot on buying used cars.
But the best way to get a better deal on cars is to look for repossession cars. Repossessed cars are sold much lower than ordinary used cars available in the commercial market. In fact, you can even acquire a repossession car for up to half its market value.
Those who sell repossessed cars are usually financial institutions such as banks and other lending companies which the previous car owner failed to pay. These financial institutions don’t have any choice but to sell the car to cut off any more losses. In that way, they’ll be force to sell the car for a much affordable price to attract consumers. Usually, these repossessed cars are put up at auction places. If you’re lucky enough, you can get one at an incredibly low price if there are not enough interested bidders.
Also, another benefit is that you will also pay less on insurance premiums, financing costs, licensing and registration fees. Repossessed car purchases are also processed more quickly and conveniently, compared to when buying a brand new car.
Sometimes, you can even get freebies with a repossession car. Of course, your car might need a few polishing, but it shouldn’t cost you a thousand dollars more. Currently, because of tough times, a lot of cars in still great working condition are repossessed and sold for less.
For a student or an ordinary salaried worker, buying a repossession car is definitely better primarily because of economical reasons. Just like in buying any other commodities, you would have to consider what you’re going to use it for. If you just need a car to get you to school or work, then you probably won’t need that shiny sports car, right?
Michael Louis is always on the look out for a good deal and enjoys sharing his secrets. Did you fine these Repo Car buying tips useful? You can learn more at Find Repo Cars