Thursday, April 20, 2006

Buying a new car/Lease/Pre-owned Car

If buying a pre-owned car, there are various choices depending on your budget.
If your budget is < $4000-A car with approx 70,000 miles and around four years might be a good buy-Focus / neon / if lucky civic or corolla-all this if you want to drive less than 20 miles a day to get used to US driving. But remember to buy AAA membership-comes in handy for emergency towing. Also when you are ready to buy a new car- don’t worry about selling it, donate it and get a tax rebate at the end of the year.

If your budget<$8000-Try hard for getting old civic/corolla 60,000 miles and four/five years old. Do not invest that kind of money on American cars no matter what kind of a deal you get-they don’t have any resale and the car will die on you.

If your budget is <12,000- Haggle for a pre-owned Camry with 60,000 miles and roughly four to five years on it. Also a good trade off might be a pre-own Honda certified civic LX.

If your budget is $14,000 (basically you can afford installments of $ 250 a month-five years)-best bet New Civic.

If you can afford up to $300/month-Camry is excellent choice.

Lease is not a financially sound option, though it looks tempting!

Helpful websites to do research on car prices for both new and pre owned- www.kbb.com, www.Edmunds.com and for checking history of car www.carfax.com

Confidently haggle with no shame; you can save thousands! Check the previous post for financing and insurance.

2 Comments:

Anonymous Anonymous said...

Hey pal. That info was really useful. If one would go in for the <4000$ option how much would it lead to monthly deductions? Any idea pal

Thu Apr 20, 08:24:00 AM  
Blogger img said...

“Monthly deductions”- if you mean the tax deduction, then it is at the end of the year e.g. when you file taxes in March/April 2007 you are eligible for a rebate on tax returns can go up to $500 or more just for the car if you use itemized deduction (not standard deduction)-get a tax accountant to do that or turbotax.com.

If you are asking for monthly installment by financing then it depends how much you put cash down and your rate of interest you are approved for.
I hope I answered your question.
Thanks for blogging.

Thu Apr 20, 08:28:00 AM  

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