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Is it better to buy a car with low mileage or high mileage?
The number of miles on a vehicle’s odometer is one of the most important factors determining the price of a pre-owned car. As such, a vehicle that has higher mileage will most-likely be costlier than a similar vehicle with fewer miles. Generally, a car with lower mileage also offers better ride quality.
What is the highest mileage you should buy for a used car?
There’s no absolute number of miles that is too many for a used car. But consider 200,000 as an upper limit, a threshold where even modern cars begin to succumb to the years of wear and tear.
What is a better predictor of the cost of a used car age or number of miles?
In conclusion, the explanatory variable that does a better job of predicting the cost of a used car is the number of miles on the car. The correlation between the number of miles and the cost of a used car is -0.528.
How much should I spend on a used car?
How much you should spend on a car is all about your annual income and monthly budget. Financial experts say to not spend more than 35\% of your annual income on the car itself and the costs that come with your purchase.
Is it better to buy a used car with low mileage?
Although cars experience an initial burst of depreciation, the key to getting a screaming deal is to wait for their depreciation to essentially flat line. A low mileage, relatively new used car is still going to experience a lot of depreciation, which makes it a fairly bad deal for you, the savvy car purchaser.
Is it better to buy a newer or older car?
Once again, this depends on the vehicle you choose, but generally speaking, newer vehicles will be better than older ones. For example, 10 years ago, heated rear seats were considered a huge luxury reserved for only the most expensive cars. Now, this feature is on the options lists of most family sedans and even some compacts.
How to buy a used car on a budget?
1. Set a Car-Buying Budget You Can Afford Setting a used car buying budget isn’t as simple as looking for a pre-owned car, truck, or SUV that gets a monthly payment you think can manage. While the monthly payment does need to be affordable, you need to look beyond it to get a proper idea of the total cost of owning the car.
Are new cars more reliable than old cars?
On the other hand, new cars are extremely reliable. Perhaps more importantly, they carry warranties, so manufacturers pay for any problems that arise for several years. The downside is that they depreciate far out of proportion to older cars, and depreciation costs are so high that they can dwarf repair and maintenance costs for years.