Is The Best Car A Cheap Car?
When I think of a cheap car I am thinking of a used car. When someone from India thinks about a car that doesn’t cost very much money they are thinking about the Tata Technologies Nano.
The Nano is one of the new breed of cheap new cars that are being produced in India. If you would buy this car over in India it would only cost $2,500. But once this car gets all the fancy safety and emission equipment mandated by the US DOT the price will jump up to at least $11,000.
The estimated US price for the car might change by the time the car makes it to showrooms in the year 2011. But all in all the price tag is low enough for most Americans to afford a new car.
But not all cheap cars are new and not all cheap cars are jalopies that belong in a junkyard. If you are willing to buy a car that is two or three years old, then there is no doubt that you can get a car that has fairly low mileage at a good price. One of the main factors that help reduce the price of a used car is the depreciation that occurs on all new automobiles the moment they drive off the lot.
The way depreciation works is like this: A new car might sell for $25,000, but once it is driven off the lot by the new owner it depreciates about 15% in price. That means that the new car is now only worth about $21,200. And every year, depending on how well the car is maintained and how many mile are driven on it, it keeps decreasing in value. So it is not unrealistic to think that you can pick up that $25,000 car for $15,000 when it is 3 years old. Not bad for a fully loaded Toyota Camry or Honda Accord.
But the best deals on a cheap used car can be found with American cars. Cars that have an American name plate on them do not hold their value as well as foreign cars. The same $25,000 Ford Taurus or Chevrolet Impala can probably be picked up for $10-$12,000 3 years after it rolled off the showroom floor.
There is another major advantage to owning a cheap car and that is cheap car insurance. Used cars are not as expensive to insure as new cars. But you do have to be careful when shopping around for car insurance.
If a company is offering to sell you really cheap car insurance then you can expect the deductible on the policy to be very high. You can also expect the insurance company to be very strict when it comes to paying out any benefits on the policy. You will need to be prepared to do battle with the company. You should always remember that you get what you pay for. And with car insurance, even if it is for a cheap car, it is there to protect you and your car. Shop wisely for car ins.
When looking for cheap used cars for sale you can expect to find a better bargain from a private party compared to the prices you would find at a used car dealership. The dealer has many costs to cover that a private seller does not. There is rental on the lot, insurance, employee’s paychecks, utilities, etc… Of course if you buy from a used car lot you don’t have to worry about the car title check. And if it the car is new enough you might get a warranty with it. Besides it is nice to be able to go back to where you purchased the car just in case something goes wrong.
For a lot of people that just can’t afford the high cost of a new car a cheap used car is the best alternative. Some people can go their whole lives without ever owning a new car. They just can’t justify spending such a large sum of money on a car. They buy used cars for cheap and spend the money that they saved on other things they consider more important.
One of the things that people seem to think is very important on a used car is a good audio system. It is now normal for people to equip their cars with stereos that have 6 or 8 speakers, mp3 players, iPod jacks, and all sorts of new gadgets. Of course the new GPS systems are a necessity if you don’t want to get lost. But for most people, especially younger people, cheap car audio is not an option.
If you take your time, do your homework, and test drive lots of cars then you shouldn’t have a problem finding a good cheap car to purchase.