Buying a car
5 necessary criteria for buying a car:
- Used vehicle — New cars drop in value as soon as you drive them off the lot. “New cars lose 70% of their value in the first four years. When you buy used, the original owner has already eaten the cost of the depreciation’. (daveramsey.com) If I buy a four year old car that the previous owner paid the depreciation cost then I should be able to find a semi-new, low mileage, decked out vehicle.
- Not many miles — Driving back and forth for the valley 5 days a week puts at least 500 miles on my car in a week. I need a vehicle with low mileage so it can last me several years without constantly breaking down.
- Affordable so I can pay cash — I don’t want to be in debt anymore so it is really important that I be able to pay for this vehicle with cash. The money I would have paid on interest can be put into my emergency fund or towards retirement.
- Good gas mileage — I drive at least 100 miles a day Monday through Friday to get to work and back home. I want good gas mileage so I’m not constantly having to file up the tank. I want a vehicle that I only have to fill up once a week at the most.
- All wheel drive to handle the snow and icy roads — When I leave in the morning for work the highway and side roads usually haven’t been plowed yet for snow removal. This makes the roads pretty treacherous. I want all wheel drive to help me stay on the roads during the winter.
5 desirable criteria for buying a car:
- New car — Even though I don’t believe in wasting my hard earned money on a new car I would still love to own one. When I first starting driving I had several bad experiences with used cars. For me there is a sense of security in owning a new car. For example knowing that any problems you will have with the car will be covered by warranty for at least the first couple of years.
- Affordable — I don’t want to be saving money forever to be able to pay out of pocket. I want to be able to save up the funds within a year or two.
- SUV or truck — I like the idea of a bigger vehicle so I can see around other vehicles. I have only owned cars and I find it really annoying not being able to see around the vehicle in front of me.
- Easy maintenance (do it myself oil changes) — To save me time and money I would like to be able to do some of the maintenance myself. For example oil changes, replacing air filter, and changing the breaks.
- Comes with all the bells and whistles — I have never had a vehicle that has all the extras. I would love to have a sun roof, good bright headlights, heated seats, car starter, etc.