Buy a Used Car: Save on Depreciation

When it comes time to a buy a car, the big question is, "used or new?"

Buyers choose used cars far more often then new. Edmunds.com estimates that in 2006, Americans bought about 44 million used cars as compared to about 17 million new cars. The estimated average used car price: $13,900. The estimated average new car price is more than twice as much: $27,800.

The main reason for the sharp drop between new and used cars is depreciation. Savvy shoppers who take advantage of this can buy a "newer" used car for much less by waiting a year or two.

When you finance a car, remember that you will be paying for more than the vehicle. You will also be paying for the cost of credit, which includes interest and other loan fees. Keep in mind that annual percentage rates are higher and loan periods shorter when you buy a used car than when you buy new.

Car Care Tips

When you buy a used car, you would like it to last longer than your car loan. Here are some tips from AAA to help you keep your car on the road for years to come:

- Good maintenance. Most drivers change oil more often than they need to but don't rotate their tires as frequently as they should. Proper rotation can add as much as 10,000 miles to the life of a set of tires.

- Run your engine for a few minutes before powering up the heater, air conditioner, wipers and other accessories. Accelerating with a cold engine can cause premature engine failure.

- If your vehicle has fuel injection, keep the tank at least one-quarter full. Cornering with a nearly empty tank disrupts the flow to the fuel pump.

- Look for cracks or looseness in engine belts. Broken belts are a major reason for roadside breakdowns.

You can begin your search for used car financing by completing the request form at Approved Autos. While there, you can read more about Buying Used Cars.