I have been driving since for about 35 years. All my life I have bought second hand car. Some have lasted a long time, some have died soon after the purchase. In my mind, I have always gotten a good deal.
Here are some examples:
- I bought an old Hyundai Pony for $500 and it lasted one year (My first car in Canada).
- A friend gave me a Chevrolet Cavalier which lasted about 6 month.
- I bought an Honda civic for $1,000 which lasted 2 years
- I bought a Hyundai accent for $3,000 which I kept for 5 years and gave it up because I didn’t need it any more.
On the hunt for a newer car
- It has to have low gas consumption
- It has to provide a great return for my money.
- And I have to like it 🙂
Here is the result.
I bought a 2013 Hyundai Elantra for $6,000 CAN. After I paid all the registration, taxes and permits, my total cost was about $7,000.
If the car lasts me about 10 years without any major repair, I am looking at about $700 per year, or about $60 per month. When I drive for Uber, I make $60 in 3 hours. In short. I believe I made and OK investment.
Why a 5 year old car?
- A car starts losing value the minute you drive it off the dealership.
- Within the first few days your car will lose about 10% of its value.
- Within the first year your car has lost almost 20% of its value
- After 5 years the car has lost about 60% of its value.
I think that buying a 5 year old car for only 40% of its original value is a good deal.
I really like this car. It is slick, fast, it’s like a toy. I have been driving it for a couple of weeks and every time I jump on it I have a lot of please with the acceleration and the shifting of gears.
What was the last car you bought? Do you think you got a good deal? Did I persuade you to buy used instead of new?
Please share your comments below.
I am a money coach, don’t hesitate to write me if you want to talk about money or anything else that is going on in your life.