How do you know if the used car that you're looking at is a good investment? Do you look at just the selling price? Do you factor in the interest? Or is there more that you should be looking at?
Looking Beyond the Selling Price for a Used Car
It's important to look beyond the selling price for a used car after bankruptcy to determine if it's a good investment or not. This is because similar vehicles can have huge differences in the actual cost of ownership over several years. Things to keep in mind when buying a used vehicle include:
- Interest rate on financing
- Taxes and fees
- Depreciation
- Fuel costs
- Insurance
- Maintenance
- Repairs
For example, according to Edmunds.com, the 2010 Ford Escape Hybrid has a higher cost of depreciation over 5 years than the 2010 Ford Escape XLS. However, the XLS costs more for maintenance and insurance. This difference, along with fuel costs, could mean a savings of around $4,000 if you purchased the Hybrid.
Test Drive, History, and Inspection
While information like this is important, you also want to make sure that the specific vehicle you purchase is safe and reliable. Before you drive any vehicle home you should take it for a test drive, get a vehicle history report, and have it inspected by an independent mechanic. This could save you from costly repairs down the road.
If you're ready to get into a new used car today, but have a messy and untidy credit report, BankruptcyAutoFinancing.com is here to help. We work with the best post bankruptcy auto lenders to get you the financing that you deserve. Just start by filling out our easy online application, and we'll get you back on the road as quickly as possible.
Remember, we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.
