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Why A Used Car Is A Greater Value Than A New Car

By Brandon G. Hampton

More and more people are buying used cars instead of new. Certainly the struggling economy is a factor affecting this trend. Another factor could be the increasing quality of cars. According to J.D. Powers, cars built within the last decade are of much higher quality than older vehicles. They need to go to the shop for repairs only 30% of the time compared to vehicles in the past. This could be a major reason many are opting for used.

To give you an idea about what kind of value you can expect, let’s examine a scenario. We spoke with one man who in 2005 acquired a used 1998 Honda Civic LX Sedan M/T for $2,500. When he bought the car, it had 115,000 miles. He then drove it an additional 60,000 miles and spent another $2,700 on maintenance and repairs. After this round of repairs, he believes the car will run at least another five years without much trouble (maybe a few hundred dollars for small fixes). According to Kelly Blue Book, the car is now worth $1,200. He figures his total cost of operations is approximately $4,000.

In 2005, if he would have purchased a new Honda Civic, it would have cost approximately $14,000 + $1,000 for tax, title and licensing. If he had paid $2,500 in cash and then financed the remaining $12,500 at a rate of 5% for five years, it would add another $1,650 in interest. Between now and then, if he had driven 60,000 miles, it would now be worth $4,800 (according to Kelly Blue Book). Assuming no major repairs except for $400 for tires, the total cost of operations would be $12,250 ($14k+$1k+$1.65k+$0.4k-$4.8k = $12.25K)

In this scenario, the total savings is $8,250. The total cost for the new car is $12,250 minus $4,000 (the total cost of the used car).

“Heck,” he said, “I could get a whole new rebuilt engine for $2k and STILL be THOUSANDS ahead.”

Many people are not aware of the best way to actually go about acquiring a used car. Sure there are dealerships and private sellers, but there is a secret most insiders do not want you to know.

We have found that the real inside secret is to buy your next used vehicle at an auction.

You may have heard of car dealers that purchase their inventory at an auction – due to the low prices, high selection, and lack of hassle (just pick out the car or truck you want, make your bid, and drive it away). But did you know that you can get in to an auction yourself – for free?

Blok Charity Auto Clearance is an example of a charity that is open to the general public.

Blok is an excellent example of a used car auction that is open to everyone. They offer hundreds of vehicles at some of the best prices in California. Another benefit of Blok is that the proceeds from every car go to support a charitable cause.

Used cars are a great value and can be had for an even better price when you acquire them through an auction.

Looking to find deals on used cars, then visit www.blokauto.com to learn more about Blok Charity Auto Clearance for you.

Article kindly provided by UberArticles.com

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Article Citation
MLA Style Citation:
Hampton, Brandon G. "Why A Used Car Is A Greater Value Than A New Car." Why A Used Car Is A Greater Value Than A New Car. 18 Oct. 2012. uberarticles.com. 31 Jul 2014 <http://uberarticles.com/hobbies/cars/why-a-used-car-is-a-greater-value-than-a-new-car/>.

APA Style Citation:
Hampton, B (2012, October 18). Why A Used Car Is A Greater Value Than A New Car. Retrieved July 31, 2014, from http://uberarticles.com/hobbies/cars/why-a-used-car-is-a-greater-value-than-a-new-car/

Chicago Style Citation:
Hampton, Brandon G. "Why A Used Car Is A Greater Value Than A New Car" uberarticles.com. http://uberarticles.com/hobbies/cars/why-a-used-car-is-a-greater-value-than-a-new-car/


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