Wheelin' and Dealin'

Thinking of getting a car? Here's our standard advice: Don't do it. As we explain in Buying a Car, cars are expensive, depreciating items, and you may be better off running your jalopy into the ground. Even if you have to pour a thousand dollars a year into your Gremlin, that's better than the $4,740 you'd spend a year if you borrowed $13,000 at 6% to buy a new ride.

Of course, cars eventually reach the point of no return. If your wheels would look better on blocks than on the road, now's a good time to find a replacement.

According to a report by Comerica Bank, cars and trucks haven't been this affordable since 1978 (taking inflation and rising incomes into account). Plus, dealers are offering plenty of incentives, such 0% interest and/or cash back. And it's time for the 2003 models to roll out, so dealers need to clear space.

For those looking for a used car, now's an especially good time to find a bargain. Due to a wave of trade-ins and expired leases over the past year, there are used cars aplenty. To move that inventory, dealers have lowered prices. Due to improved workmanship, cars now last an average of 13 years, so buying a "pre-owned" vehicle may be your best bet. A 2-year-old car can sell for less than half the price of a new car.

With any purchase, knowledge is your best weapon. This is especially true with cars, and super-duper especially true with used cars. Fortunately, The Motley Fool is a cornucopia of car counsel. For some helpful articles, click on the related links box on the right.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1151209, ~/Articles/ArticleHandler.aspx, 5/27/2017 8:19:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
Change down DOW 21080.3 -2.7 0.0%
Change up S&P 500 2415.8 0.8 0.0%
Change up NASD 6210.2 4.9 0.1%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes