To buy a new car is probably one of the least profitable bargains you can do. Ok, prove it!. Just take a look at a used car value book list. The first one to two years of an auto's lifetime it will lose 30-40% of it's price as new. A five year old car will have lost 65% of it's original price. So, if you can accept to buy, not a brand new but a few years older model that almost look like a new one, you can save lots of money. My best advice to you is that if money matters at all, buy a cheap used car.
Let's say you buy a 5 year old car that has lost 65% of it's value. Now, the value will only drop 15% or less after the fifth year of it's lifetime. Come on, do the math; your driving cost for the years to come would only be 10-15% of the car’s original value. Can you see the huge money saving potential in this way of purchasing cars? If we deduct these vehicle costs from what it cost to purchase and drive a brand new auto, you'll have a small fortune to spend on other things that can make life good for you. After two or three years of driving this car, you may resell it and buy another even newer one.
If you think this was a great bargain, just wait because here comes a real bomb that will probably blow you away. The figures above were made under the pre-assumption that you purchased your vehicle from an ordinary auto dealership. What if I told you that you could buy the same, much cheaper another place? I'm talking about auctions. There are lot's of auctions around the country as well as on the internet. There is one type of auction that beats all the other when it comes to cheap bargains and this is repossessed car auctions. These are auctions of vehicles that get repossessed by banks, US Customs etc.
In the past you had to be a dealer with a special license to benefit from this enormous cost saving source. Fortunately, this has changed and today anyone can take advantage of this great bargain channel, by applying for a membership at a special repossessed car auction licensed organization. For a few bucks a year you are now able to search through lists of hundreds of thousands of vehicles and your chances of finding the vehicle of your dream for a price that you can afford are better now than ever. These organizations are represented offline as well as online. I know people who are members of such organizations that have saved between 80% and 95% of the car's book value. So why not consider to take a look at this channel next time you want to purchase a car?
Terje Brooks Ellingsen is a writer and internet publisher. He runs the website cheap-used-cars.w-eland.com . Terje gives advice and helps people with automotive issues like finding cheap used cars and car auctions .