Government car auctions ny

Government car auctions ny - Government Car Auctions

Government car auctions ny

once you have an idea of the kind of car
you want and roughly how much you’re
looking to spend the next question might
be new or used a used car will often
cost less than a new one but a new car
may be more reliable and have fewer
unexpected repairs that can impact your
schedule and budget for this example
let’s take a look at two cars one new
and one used and then compare and
contrast all the variable expenses you
might encounter with each car over the
next five years like the cost of the car
Government car auctions ny
insurance and finally maintenance and
repairs but first let’s start with the
cost of the actual car so over here
let’s say we have a brand new car with a
sticker price of $19,000 and over here
we have a used car that is the same make
and model as the other one just five
years older that we found for sale by
its owner for ten thousand dollars now
you may be wondering why is the used car
so much cheaper than the new car there
are a couple of factors one is that the
new car comes with a warranty which will
cover some of your repair expenses but
the biggest factor in this price
difference is depreciation as a car gets
older it loses value that is it
depreciates so this new car that costs
$19,000 after five years might only be
worth about $10,000 even if you’ve kept
it in good condition and the same car
might only be worth about $5,000 in
another five years
as you can see depreciation doesn’t
happen at a constant rate sure it’s
almost always going to go down but a new
car loses value fastest the moment you
buy it but then slows to a more constant
rate after the first few years if you
plan on driving your car until it falls
apart depreciation won’t matter as much
because you’re not going to resell it
but if you plan on trading it in or
selling it after five years it can make
a big difference with a new car in five
years your car might be worth about nine
thousand dollars less than what you
initially paid and with the used car
over five years your car might only be
worth five thousand dollars less
now let’s take a closer look at some
other differences starting with the
financing you may be wondering if you
can finance a car you buy from an
individual fortunately you can get this
kind of financing from a bank or a
credit union but when you purchase a
used car you’re likely to get a higher
interest rate than when you buy a new
car so let’s say that the annual
percentage rate or APR on a five-year
loan for the new car is three point five
percent and the APR on a loan that you
get for the used car could be something
like four percent using an online loan
calculator you’ll find that on the new
car you’ll be paying about twenty
thousand seven hundred dollars over five
that’s 19 thousand dollars in principle
and one thousand seven hundred dollars
in interest with monthly payments of
about three hundred forty five dollars
on the used car you will pay about
eleven thousand fifty dollars over five
years ten thousand dollars in principle
and one thousand fifty dollars in
interest with monthly payments of about
one hundred eighty five dollars so even
though you have a higher interest rate
on the used car you’ll pay much less in
interest and in monthly payments because
your principal is much less on the used
car then on your new car next let’s
compare gas mileage let’s say the new
car gets thirty three miles per gallon
and the used car gets twenty nine miles
per gallon and you drive about fifteen
thousand miles per year let’s also
assume that gas will be a constant four
dollars per gallon over five years
taking the miles driven divided by the
miles per gallon times the price of gas
per gallon we would be spending about
nine thousand one hundred dollars for
gas for the new car and about ten
thousand three hundred fifty dollars for
gas in the used one then there are
insurance rates to consider insurance
rates vary based on a lot of different
factors and in looking at new versus
used the difference in the rate for you
will likely be based more on the
replacement cost of the car the more
valuable the car the higher the
insurance rate so while a new car might
get you some discounts for new safety
features generally a used car that’s
less valuable is going to cost less to
insure so with a new car your insurance
might cost one
five hundred sixty dollars a year over
five years seven thousand eight hundred
dollars and with a used car your
insurance might caused one thousand two
hundred dollars a year and six thousand
dollars over five years now let’s look
at maintenance and repairs this is the
trickiest cost to estimate because it’s
unpredictable and major repairs can have
a big impact on your budget with a new
car major repairs may be covered by a
warranty in the first few years

Government car auctions ny - Government Auctions Cars For Sale

Government car auctions ny ny
so let’s estimate that over five years
you spend three thousand dollars total
on maintenance and repairs on the new
car now when you buy the used car you do
have the option of buying certified
pre-owned this will cost a bit more but
it’ll also come with some sort of
warranty but for this example let’s just
stick with the car you bought from its
previous owner the cost of regular
maintenance typically increases as the
car ages and so does the chance of
needing a major repair major repairs can
be inconvenient – they take time and
sometimes you might have to get a rental
car while yours is in the shop for the
used car you might be lucky and only
need to spend about four thousand
dollars on maintenance but a more
realistic number may be around six
thousand dollars on the used-car so
adding this up you’d spend a total of
forty thousand six hundred dollars on
the new car and 33 thousand four hundred
dollars on the used car over five years
that’s a difference of about forty
thousand six hundred – thirty three
thousand four hundred seven thousand two
hundred dollars less on the used car now
keep in mind this doesn’t take into
consideration the value still in the
cars the new car probably has a few more
years left in it than the used one and
if you were to resell them you’d be
getting about ten thousand dollars for
the new car rather than about five
thousand dollars for the used car but
we’re looking at a lot of variables
after all with certain cars and
situations the new one may end up
costing you less than the used one and
there are multiple other things to take
into consideration a new car will
probably be more reliable with newer
features and it may be safer or be
better for the environment with a used
car you’ll have lower monthly
which could be good for your budget but
it may also be less reliable and you
could have larger unexpected costs when
it comes to repairs by looking at your
own needs and budget and doing the
research and the math on the cars you’re
interested in you can figure out which
is the best choice for you

photo by: carolinqua