buying a Car
Buying a car is usually our second biggest
investment after our home purchase and most of us will do it more than
once in our life.
There is something emotional about cars, it
represents our taste and style, our economic status and our character.
Some women even claim that a car is a man's extension of his
reproductive organ. One the other hand (the good hand) there are women
out there that might express their exhibitionism and extravagance by
choosing to drive a red flashy car for the whole world to notice them.
Both sexes would agree they sometimes feel they "fall in love" with a
certain car model.
There are people who get very existed from a
small scratch on the cars lower side, as if it were their own skin. The
beauty of the car, its aerodynamics shape, the gadgets inside, the seats
the feel of it all play a major part in our decision making.
In our modern life it's almost impossible to function without one and it's expensive to acquire, to finance and to maintain.
Buying a Used Car
The question I would like to bring up here is whether it's wise to buy a used car or to make an additional effort and buy a new car.
The question I would like to bring up here is whether it's wise to buy a used car or to make an additional effort and buy a new car.
If you look at it purely from an economical
stand point then it's quiet obvious that due to the fact that you miss
out on the heaviest depreciation hit the average car absorbs in the
first two and three years it's wise to buy a used car. A car of two or
even three years on the road is basically a new car and in some cases
didn't even finished the manufacturers original bumper to bumper
warranty. (Not included labor 8-(
On the average you might save on a used car
anywhere between $ 3,000 to $ 8,000. In case you know how to do it via a
car dealer that will buy the car for you at a car auction limited to
car dealers only (for a couple of hundreds of Dollars commission)you
might even get a real bargain. See:
www.carbuyingtips.com/auto-auctions.htm
Another good reason to buy a used car is the
fact you can put your hands on a bigger or better or in other words more
car for the same budget as the new smaller car would have cost you.
More and more manufacturers offer "certified
pre-owned" programs. Cars sold as certified pre-owned (CPO) bridge the
gap between new and used. They are subject to a rigorous inspection and
repair process, and usually are covered by a warranty from the
manufacturer. CPO cars will usually cost a bit more, but the added
warranty and peace of mind makes them a good value.
If you want to get extended warranty look at: www.carbuyingtips.com/warranty.htm
Where do you get the market value of the cars,
that's pretty easy, all you have to do is follow this link: Blue Book -
Used Car Values at:www.cars.com/go/index.jsp
When purchasing a used car you should protect
yourself from buying a flood damaged vehicle by doing a little research
and by having the vehicle thoroughly checked by a mechanic.
Rain, thunderstorms, swelling rivers and
seasonal hurricanes hitting the coastlines all contribute to flooding
disasters that can mean serious water damage to vehicles in those areas.
Water damage from 1999's Hurricane Floyd ruined approximately 75,000
vehicles and more than half of those ended up back on the road. Tropical
Storm Allison damaged another 95,000 in 2001 and Hurricane Ivan left
more than 100,000 vehicles water-logged.
The numbers for Hurricane Katrina are expected
to skyrocket above half-a-million and safety experts warn that many of
these flood damaged vehicles also will be dried out and offered for
sale. Hurricanes and tropical storms, however, are only part of the
problem.
Flooding can occur throughout the year and in
any part of the country. however, auto industry analysts caution
consumers that the risk of buying a flood damaged car is not limited to
these areas. Flood damaged cars are often repaired cosmetically, and
moved to adjacent states or even across the country where they are sold
to unsuspecting consumers.
These floodwaters can cause damage to vehicle
computer and electrical systems, as well as potentially causing
anti-lock braking and airbag systems to malfunction.
World Trade Center Damaged Cars, thousands of cars
were damaged in New York City on 9/11/2001. It's a prime example of
disasters having long term effects other than the initial death and
destruction. These cars will no doubt be salvaged, rebuilt, sold at car
auctions and have their titles rebuilt, most likely out of state.
An important help is the nationwide history data
base of the cars in terms of damages, salvaged, lemon, flooded, fraud,
accidents, rental etc' you can look it up at: www.carfax.com/
In addition it's recommended you have a
mechanic check it out - A certified, trusted mechanic will test the
electrical and safety systems, two of the major components that water
can affect. They can also look for signs of water damage that may not be
visible to the untrained eye.
Car Donation
It is estimated that every year, more than a
million Americans donated their cars. Why do they donate their car?
Well, few reasons: A. The proceeds go to charity organizations and it
provides for the donor a good feeling of contributing to society. B. its
tax deductible (Less than it used to). C. The car is being towed or
driven away by the company who arranged the deal.
Unfortunately, whether through ignorance,
confusion or greed, a substantial percentage of car donors have been
deducting the full "suggested retail price" - what a dealer would get
for reselling your trade-in instead of the fair market value. That's far
more than the IRS had intended, costing the government millions in lost
tax revenue.
The charities weren't making much, either.
Most of the donated cars were sold by the charities for a pittance at
auction, and middlemen who administered the programs on behalf of the
charities took a large percentage of those meager profits.
So IRS changed the rule last year. From now
on, if your car is valued more than $500, the deduction is limited to
the charity's actual selling price. The donor must attach a statement of
sale to the tax return in order to receive the deduction. (The charity
is obligated to provide the statement within 30 days.) You are not
entitled to know the deduction amount before donating your car. Although
the IRS has closed the loophole in the law, there is still a way to
deduct full market value of your vehicle: If the charity uses the car
itself to further its specific purpose