Should You Buy a New or Used Car
Summary
TLDRIn this video, Greg, the 'Car Angel,' explains why buying a used car is financially smarter than a new one. He illustrates that most car depreciation occurs in the first few years, with repair costs increasing exponentially over time. The 'sweet spot' for buying a used car is between the second year and the eighth year, or 24,000 to 96,000 miles, offering the best balance of price and maintenance. Greg's website, carbuyingsupport.com, offers guidance on purchasing high-quality used cars in this optimal range.
Takeaways
- 🚗 The best choice for a car is often a used one, according to Greg, the 'Car Angel'.
- 📉 Depreciation is steepest in the first few years of a car's life, leveling off as it ages.
- 🔧 Repair costs are low for new cars but increase exponentially over time.
- 💰 The 'sweet spot' for buying a used car is between the second year and the eighth year of the car's life, or 24,000 to 96,000 miles.
- 🏞 Cars are built to last, making it financially wise to buy within the sweet spot for optimal value and maintenance costs.
- 💡 Buying a new car is often chosen for the perceived low risk, but financially it's not the best move.
- 🌟 Greg's website, carbuyingsupport.com, offers guidance on how to buy a high-quality used car in the sweet spot.
- 🛠 The sweet spot is ideal because it balances lower depreciation with manageable repair costs.
- 👤 Most people opt for new cars due to the lack of immediate repair costs, but this overlooks long-term value.
- 📈 Greg illustrates the financial benefits of buying a used car with a graph showing depreciation and repair costs over time.
Q & A
What is the main topic of Greg's video?
-The main topic of Greg's video is determining whether it's better to buy a new or used car, with a focus on why a used car is often the best choice.
What does Greg's graph represent?
-Greg's graph represents the relationship between the age of a car and its value (depicted as a line for money) and the age of the car.
How many miles per year does Greg assume in his analysis?
-Greg assumes that a car is driven 12,000 miles per year in his analysis.
What is the significance of the first few years of a car's life according to Greg?
-According to Greg, most of the depreciation in a car happens in the first few years, after which the depreciation evens out.
Why does Greg suggest that buying a new car might not be the best financial move?
-Greg suggests that buying a new car involves heavy depreciation in the beginning with little repair cost, which is not the best financially because you lose a lot of money in the initial years.
What is the term Greg uses to describe the optimal time to buy a used car?
-Greg uses the term 'sweet spot' to describe the optimal time to buy a used car.
What is the duration of the sweet spot according to Greg's video?
-The sweet spot occurs between the second year and the eighth year of a car's life, which translates to between 24,000 and 96,000 miles driven annually.
Why is the sweet spot considered the best financial choice for buying a car?
-The sweet spot is considered the best financial choice because it offers the best price for the car with the least amount of maintenance required during ownership.
What advice does Greg give about the risk involved in buying a new car?
-Greg advises that while buying a new car involves very little risk in terms of repair costs, it is not the best financial move due to the high depreciation costs.
What resource does Greg offer to help viewers buy a high-quality used car?
-Greg offers guidance on his website, carbuyingsupport.com, where he teaches viewers how to successfully buy a high-quality used car in the sweet spot for the best value.
What is Greg's role as the 'car angel'?
-As the 'car angel', Greg's role is to provide advice and guidance to help people make informed decisions when purchasing a car, particularly focusing on the financial benefits of buying a used car in the sweet spot.
Outlines
🚗 Why Used Cars Are the Best Choice
Greg, the 'car angel', discusses the financial benefits of buying a used car over a new one. He uses a graph to illustrate how depreciation is most significant in the first few years of a car's life, after which the value drops more gradually. He also points out that new cars have lower initial repair costs, but these increase exponentially over time. Greg introduces the concept of the 'sweet spot' for buying used cars, which is between the second and eighth year of the car's life, or 24,000 to 96,000 miles. He argues that during this period, the car offers the best value for money due to lower purchase cost and manageable maintenance expenses. Greg encourages viewers to visit his website, carbuyingsupport.com, to learn more about buying a high-quality used car in this optimal price and maintenance range.
Mindmap
Keywords
💡Depreciation
💡Repair Costs
💡Sweet Spot
💡Car Angel
💡Miles per Year
💡New Car
💡Used Car
💡Financial Choice
💡Car Buying Support
💡Risk
💡Ownership
Highlights
A used car is often the best choice for car buyers.
Depreciation of a car happens most rapidly in the first few years.
After the initial years, depreciation slows down as the car ages.
New cars have low repair costs in the first few years.
Repair costs increase exponentially as the car gets older.
The 'sweet spot' for buying a used car is between the second and eighth year of the car's age.
The sweet spot corresponds to 24,000 to 96,000 miles driven per year.
Cars are built to last, making the sweet spot a financially smart choice.
Buying a car in the sweet spot offers the best balance between price and maintenance.
Most people buy new cars due to the perceived low risk.
The best financial move is to buy a used car in the sweet spot.
Greg's website, carbuyingsupport.com, teaches how to buy high-quality used cars.
The website provides guidance on buying from private parties or dealers.
Greg offers tips to get the best car at the best price and experience.
The video aims to educate viewers on smart car buying strategies.
Greg is referred to as the 'car angel', guiding viewers through the car buying process.
Transcripts
hi I'm Greg your car angel which is the
better choice a new or used car in this
video I'll be showing you why a used car
is really the best choice so in this
graph that I'm drawing for you this line
represents your money and this line
represents the age of the car beginning
when new and when it's two four six
eight and ten years old so now of these
years I'm assuming twelve thousand miles
per year all right okay so that is how
many miles are being driven per year if
you were to buy the car new here you'll
find that most of the depreciation in
the car happens pretty much in the first
couple of years and it evens out as the
car ages in other words you will lose
most of your money on a car's value in
the first few years and as the years
progress you're going to have less and
less depreciation between individual
years money that you lose and
depreciation is here in the first few
years you will also on the other side by
buying a new car have very little repair
cost if any in the first few years so
that's why I begin it down here okay so
here the green being your repair cost
are low at the beginning and they start
going up over time exponentially okay so
now you have your depreciation
and you have your repair costs so the
question is should you buy new and have
the heavy depreciation in the beginning
but have very little repair cost or buy
a car that has had a lot of depreciation
that's occurred and risk the repair cost
and the answer to that is what I call
the sweet spot and the sweet spot occurs
at about the second year and goes to the
eighth year and that would if you're
putting on twelve thousand miles a year
that would be between twenty four
thousand and ninety six thousand miles
and this sweet spot is what I consider
the best financial choice to own a car
cars are built so well these days that
the sweet spot is at twenty four
thousand two ninety six thousand miles
so this scenario you're going to get the
best possibility of getting the car for
the best price with the least amount of
maintenance during your ownership most
people buy a new car because there's
very little risk involved in other words
there's no repair cost but the best
financial move is really to get into
this sweet spot right here and what I
have done at my website car buying
support calm is to show you how to
successfully buy a high quality used car
in the sweet spot for the best money
whether you're buying from a private
party or a dealer so I encourage you to
go to that site and I will teach you
exactly how to get the best car at the
best price with the best experience I'm
Greg your car angel thanks for watching
I'll see you in the next video
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