Matched Content

Saturday, April 7, 2012

Should I Buy New Vehicle, Used, or Just Rent?

Buying a new vehicle will get satisfaction, including a distinctive new smell that gives particular satisfaction. New product is covered by warranty and free service, usually for one year or 10,000 miles, whichever is reached first. There's even a showroom that offers a warranty coverage for 20,000 miles or 3 years, 50,000 miles or 5 years, etc. The new vehicle has the trendy design and cutting-edge technology, but sometimes the trend did not last very long.

Buying a used vehicle can save your money, because the price is fallen shortly after leaving the showroom. If you drive a new car out of a showroom, the price can fall as much as 15% of the price you just paid a few minutes ago. The first one year is the biggest value depreciation of a new car. In the third year the price could fall to as low as 70% of new price.

Some of specific vehicle
have prices that can rise even in used condition, but it is rarely happen. Usually the price goes up for an antique and unique vehicle and favored by collectors. But although the price could go up, it would be difficult to sell, because only a few people who intend to buy, although many like it. Such vehicles are usually not for everyday use.

One of some considerations when buying a used vehicle, make sure the maintenance
s and repairs are well recorded and performed by certified official workshop, so the quality is guaranteed. Maintenance and repair records can be seen and read on service book of that vehicle. One clue of good performed maintenance if services are always done on time, not too far off from scheduled interval, eq. for 3,000 miles service is performed at odometer 3,030; 6,000 miles service is done when the odometer 5,935; 15,000 miles service is done when the odometer 15,010, etc.

If you intend to buy a used car, try to
find a used car with under 30,000 miles on the odometer. If the odometer has already too high then the repair cost will be expensive.For example: changing tire at least two pieces can occur on the odometer of about 30,000; clutch replacement at about 30,000 to 50,000 miles odometer, engine overhaul can occur when the odometer reaches about 60,000 miles, and of course some other parts such as a/c compressor replacement, radiator leaks, brake pads, etc., which may occur after the vehicle odometer has reached over 30,000 milesHigher odometer means more often vehicle on the road, so more scratches and damages to the vehicle body and ruin its appearance.

The lower the odometer, the better, especially if the used vehicle is still covered by warranty and
free service program.

Trend in vehicles sometimes difficult to predict, as well as the success of a new product. Sometimes there are products that are predicted to succeed but have
bad sales. Either because buyers are less interested or because of technical defects in the product. We often read withdrawal news of the latest model vehicles because of a technical defect. By purchasing a used vehicle, we can avoid a vehicle that is not popular and containing defects.

While you are saving to raise funds to buy a used vehicle, be diligent to find info about the different brands and models of new vehicles. Note
the popular ones, many on the streets, and less complaints from customers. So you can choose one among used vehicles which are most preferred by customers. If the vehicle is popular, then the price can be more likely to survive if you ever intend to sell it back. As you have enough money, you can decide which one is the best used vehicle that suits your needs.

Today there are so many car rental companies. If you live in the city with good public transportation, rental car is an excellent solution. For people who live in cities, public transportation can be used almost anytime and anywhere. And usually people only need a private vehicle while on vacation on the weekend with family. Because of that private vehicle used only on weekend, why buy? By renting you do not have to bother to prepare garage, driver, maintenance and repair, taxes, insurance, value depreciation, breakdown, incident and accident, etc., even some rental car includes fuel cost. You also do not bother to wash and clean the vehicle after use.

You can
change models and brands of vehicles every week to avoid get bored. In some countries there are antique and unique cars available for rent. You can only dream to buy those cars, but you can rent them.

In financial calculation, if your money to buy a new car is invested in time deposits, stocks, mutual funds, bonds, etc., and the interest will be enought to rent a car for holiday.

vehicle rental rate per 12 hours is about 0.2% of vehicle value. With savings or investments interest of 5% per year then you can rent a vehicle for about 25 x 12 hours per year, or every two weeks. If your investments can make 10% margin per year then you can rent a vehicle for about 50 x 12 hours per year, or once a week.

If you buy a vehicle, then its value will continue to decline even if
you are not using that vehicle. After a while you will get bored with that vehicle, if you sell it then the price is much lower than the price when purchased. If you invest your money and the interest is used to rent a vehicle, then the value of your money will be resistant to go down, even it can go up.

Renting a vehicle is
good for those who live in apartment complete with facilities such as: offices, schools, markets, hospital, etc.. Working every day in a location very close to your apartment, shopping at the nearby mall, and children school is also at the apartment complex. So walking is suitable for daily transport, or cycling, or use public transport. Some apartments charge for vehicle garage or parking. So rent a car for weekend holiday is the perfect solution with no hassle.

No comments:

Post a Comment

Your positive comment will be highly appreciated to improve this site