You must understand about several factors that affect the cost of owning a car in the short and long term. Here is a list of factors that you should consider when you want to spend as little money as possible when buying a used car:
1) the car should not be too expensive to buy
2) The vehicle must be in good mechanical condition
3) Parts for repairs must be available and accessible
4) The car must meet reasonable longevity expectations
5) The car has to be economical in fuel costs
6) The car must be economical in insurance costs
These are general guidelines based on the cost of purchasing, maintaining, repairing, insuring and driving the car. A car that meets these requirements is likely to cost you less in the beginning, but in the long run, if you take the running costs of driving into account.
What is the best kind of car for a small budget?
If you are on a tight budget but need a car that is reliable in the near future, then you should buy a four-cylinder, four-door, front-wheel drive vehicle. In addition, the vehicle should not be younger than 5 years and not older than 12-15 years.
The age of the car you buy will be one of the most important factors in determining the value of the car. The year of the vehicle will not only be a feature of the state of the automobile itself, but also the insurance offers you receive on the car, the availability and cost of replacement parts and the resale value in the future if I want to sell the car
Buy a new car
Buying a new car is a rewarding experience, but it’s rarely a smart investment as a new car is immediately devalued as soon as you own the car. This measurable loss of capital is due to the fact that the car is no longer new and thus loses its most valuable asset. For anyone who wants to buy a car on a tight budget, a new car will almost always be a bad decision. If you intend to buy a new or almost new car, the value of your dollar purchase will go much further in a car that even has six months or a year.
Buy used cars for 1-5 years
Cars used in the category are a much better investment than cars that are new. The big depreciation of the car when it became from a new car to a used car, has experienced the present or previous owner. A car in this age group will be less susceptible to mechanical defects than moderately older cars, which is important because spare parts are more expensive and less available than cars a few years older. Moreover, the insurance premiums cited by the newer cars are much higher than those of a car several years older. This is a very important factor for any used car buyer who falls into a medium to high risk category due to his or her age, experience or previous insurance claims.
Buy used cars from 5 to 10 years
Used cars aged five to ten years are the best chance for a good long-term vehicle investment for a frugal buyer. The insurance prices for these vehicles will be much lower than the newer vehicles and the spare parts must be available and profitable to buy. The purchase price of used cars in this age group is low and the opportunity to find an undervalued car for sale is high if you buy enough. There is a sharp drop in prices when cars go from five to ten years old. A used car that is more than ten years old has a price that reflects his condition and not his age.