New Car Vs. Used Car

Should you buy a new car… or should you buy a used car?  The answer is:  It depends. Sorry.

Let’s look at some of the things that may help you make your decision.

This could be a great used car...right?

New cars today do have very impressive warranties.  And, quite frankly, new cars built today are built much better than they were a generation ago.  But, used cars also come with warranties.  Sometimes it’s the remainder of the hefty warranty from when it was new, and other times you can purchase an additional warranty for used cars.

Used cars are always cheaper than new cars… in a perfect world.  But, if you’ve learned anything about the economy in the past few years… things aren’t always what they seem.  Interest rates on new cars can be quite low right now, sometimes even 0%.  Interest rates on used cars are almost never as low as new, which could mean both a higher payment each month, and a higher total cost of the car at the end of the loan.

New cars are typically in top condition, and your risk of something going wrong should be relatively low.  However, with so many manufacturers offering pre-certified used cars, the risk of trouble with many used cars is also relatively low.

On a strict apples-to-apples comparison, a good used car will almost always be the better financial deal.  But, according to bankrate.com, if you expect to hang onto a car longer than most, and are looking for a more robust warranty, a new car may make more sense.  BankRate, Edmunds, and Cars.com all have great tools to help you through the process.

Little Pieces & Parts of Your Car that are Saving Your life & Money!

What can your car learn from an aluminum can?  Quite a bit, it seems.  While it doesn’t sound like that can provide much safety, the people that make soda cans and aluminum foil are getting into the car business.

Here’s why:  Extra weight in your car means extra time to stop.  Extra time to stop means extra work for your brakes.  Extra work for your brakes means they wear out, and that’s where your safety comes in.

The trick is to create a car that is both lightweight, and also safe.  Aluminum manufacturers are teaming up with car manufacturers and they are finding out that people are willing to pay a little more money for a car that will get better gas mileage.  The heavy steel is being replaced by lightweight aluminum, while still offering great safety. It also has an impact on your stopping distance.  A lighter car, less effort to stop. 

Always be aware of your stopping distance, and if it seems like it’s taking you longer to bring your car to a complete stop, that’s the time to talk to a mechanic.  It takes about 175 feet to bring a car to a stop when it’s going 50 miles an hour.  That’s about 13 car lengths.  If it’s taking your longer than that, it’s time to get them checked… because even the strongest car (or aluminum can) can withstand only so much.

A Car or a Computer or Both?

Imagine you are a time traveler from 1940, and you just got plunked down into a car dealership.  That machine isn’t as much as a machine as it used to be, is it?

While the technology has greatly improved our cars, one unintended consequence has happened:  Those colorful touch screens are quite distracting!  Once, you could reach down without taking your eyes off the road and simply adjust the temperature.  Now, you have to swipe to the right page, zoom in on the virtual knob, and slide it to the right position.  Assuming you haven’t already driven off the road by now.

Enter the whiz-kids at Apple.  According to appleinsider.com, they have just received a patent from the U.S. government for a whole new way to control your dashboard.  One idea: a projection onto a generic knob that would change things like the volume or the air conditioning, depending on what was being projected.  Existing technologies such as “heads up displays” or like what you see on cameras that detect the position of your head would allow you to keep your eyes on the road.

The most interesting technology is for a touch screen that actually forms ridges and raised areas to give you the ability to “feel” your way across the touch screen, without the need to look at it.  All of these technologies not only make driving in the car easier, but safer too.

Now… if the computer would just hand me my French fries…

Cars Coming of Age

Not much has changed in the automobile industry in nearly 100 years.  Basically, you put gas in one end, and go sit on the other end and drive away.  That's the way it has always been and, with exception to some design changes, nothing is really different from the first car to now.

Until this month. 

Since the oil crises in the early 1970's to now, people have been saying “there has to be a better way.”  Lots of experiments, lots of expensive solutions, and Detroit just hasn't come up with much.  Now, it seems, the solution is coming out of a California company. 

Tesla hasn't reached the massive output and monster sales numbers that Detroit's “Big 3” have, but it could be the tiny rock that finally gets Goliath's attention.  After cars like the Volt, Leaf, and electric Ford Focus have had lukewarm reception, comes a completely different car that just got the honor of being Motor Trend's Car of the Year.

Beyond the prestigious award, comes real financial gain for Tesla.  Suddenly, this strange little car company is making a profit, and making a car that acts like... well, a car.  It drives further, handles better, and people seem to want it.

Granted, it's early and Detroit gets a bit uncomfortable when somebody builds a better mousetrap, but one would be wise to keep an eye on this Tesla.  A financial success in the automotive marketplace could mean a whole new way of buying and driving cars.  One that we've all been hoping for since the 1970's.

5 Car Buying Tips for Teens

It's the time all parents dread - your teen gets the license and is now begging for a car. Before you say "No", consider some of these tips to buying. And, remember, after they buy it, they'll need a good auto mechanic!

 

1.                  Start on the used lot! 

It’s often easier to finance a used car, and you’ll likely get much more car for the same money as used.  Some manufactures are offering warranties that last as long as 10 years and 100,000 miles and you can often find a used car that is still under warranty

2.                  Safety first!

SafeCar.gov has a handy tool that will show you the crash test ratings for cars going all the way back to 1990.  Check the list before you buy.  Also, consider a device that keeps an eye on your teen’s driving habits.  Phone apps exist such as the Android based “Speedbump,” and insurance companies like Allstate, Progressive, and State Farm offer lower rates when their monitoring devices are installed.

3.                  Credit issues

It can be tough getting your first car when you haven’t established credit, however many dealerships have in-house financing that can help establish credit, and work with people in unique situations.  If this still doesn’t work, consider a cosigner.

4.                  Share the cost

Sometimes having a little “skin in the game” helps young buyers appreciate the value of a dollar.  While getting in over their heads is not advisable, perhaps come up with an agreement for them to pay the fuel or insurance costs.  Also, some insurance companies will offer a discount if kids keep their grades at a certain level.

5.                  Be realistic!

Now is the best time to learn that you don’t need the flashiest car on the lot.  Pick one that will keep them safe, hold up on the road, and get good gas mileage.  You’ll help your teen build great financial habits now that will stay with them for many years to come.