Used Cars - The Key To Your Family's Financial Health

by Brandon G. Hampton

A new car loses 22% of its value the moment you drive it off the lot. After two years, it usually loses another 29%. That means that over HALF of a car's value is lost in just twenty-four months.

You may be wondering why I'm bringing this up.

It's a recession, and families are struggling. Many have never stopped to think about whether they should get a new or a "used" car when the time comes to replace the family cruiser.

If the next "new" car you buy is older than 24 months, it can have a significant effect on your personal balance sheet.

How big of an impact can it have? The average amount saved by going the previously owned route for your next vehicle is over $15,000 (compared to paying "sticker price" for a brand new car or truck).

An additional $15,000 could help you financially get back on your feet. Just think - if you invested that money for a conservative 7.2% return, you would have $30,000 in just ten years. You could use this same technique to fund your retirement. If you applies this strategy every five years for the next 30 years (assuming you have 30 years until retirement), you could end up with over $100,000.

No matter what you use the extra money for - kid's education, savings, down payment on a new home, vacation or investments, it's worth comparing new to used. These days, many late model used cars are still under warranty. And they hold their value best after the major depreciation has occurred in the first two or three years... so you will only see a small drop in the re-sale value of your vehicle, compared to new car buyers who see their vehicle's value plunge precipitously.

Where can you go to find your next used car? That's another key to your family's fiscal health. You can do what the used car dealer's do - buy your next car or truck at an auction

To attend an auction - legally - without a car dealer's license, look in to Blok Charity Auto Clearance. They have hundreds of vehicles to choose from, and operate an auction in Southern California every week.

Through places like Blok, you can select from hundreds of vehicles and bid on them. You can either just show up to the auction and start bidding or go before the day of the auction and select which vehicle you would like to purchase. This is the method car dealers have used for years to get wholesale pricing. Another added bonus is that you won't be pressured by salespeople to make a decision.

You can get a financial double play - saving twenty five to fifty percent by buying used and another five to eight percent by buying at wholesale prices from Blok Charity Auto Clearance. It all adds up to a great way to improve your family's finances in these recessionary times.

As an added bonus, Blok Charity Auto Clearance receives its cars and trucks from generous donors who are providing funding for worthy causes when they contribute their vehicle to Blok. You will be doing a good deed when you drive your new car home - and thinking about what to do with the "extra" $15,000 the whole way!

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