Have you ever blown money on an item simply because it was new, only to regret it immediately? We all have. MSN/money aired a segment on the following things that are either way over-priced, depreciate immediately after purchasing, or aren’t worth the hundreds extra simply because they are new. Young adults just starting out should pay attention to simple ways of saving money when starting to make large purchases. Let’s look at what they recommend we buy used:
Wasted money when buying new
- Vehicles. Yes, not only are you giving the dealer thousands more than the car is worth, your taxes and insurance will be out the roof. Look for a demonstrator with only a few hundred miles or buy from a one-owner who has kept records. You can take it to a mechanic and pay just a few dollars to get it checked out. The beauty of a used car is that most of the kinks have been discovered and repaired. Use Kelly Blue Book when purchasing a used car. You may drive away with an investment instead of a huge debt.
- Boats, Motorcycles, RVs. Anything with an engine depreciates as soon as you take it off the lot. There again, you need to consider the taxes and insurance on a used versus a new item. New boats, for example, depreciate the most in their first year. So, even if you buy a vessel that’s just one year old, you stand to save a boatload.
- Houses. Not only can you save money, but older homes also may have better “bones” than some new construction. If you love the idea of new construction, remember that an existing home doesn’t necessarily have to be 50 years old. If you want an energy-efficient home with new amenities, you can probably find it at a lower price if you’re willing to be owner No. 2 or 3. Remember, a lot of newer homes are built with materials that burn faster and contain chemicals that can cause health problems.
- Timeshare. This is the worse one. When a developer sells you a new timeshare, you might as well have chopped your financial foot off. You have signed to pay so much more than you will ever get in return if you try to sell. These are always on the market as buyers soon learn the outrageous HOA fees are not worth keeping the same vacation property to use year after year. Some people are practically giving them away because they’re so desperate to get out from under the annual fees. You can find these at a steal with former buyers constantly dumping them as a poor investment.
- Books. Many of us live near a public library system that can meet most of our reading needs. Check out “11 Places to Find Free E-Books,” or head to Amazon or Amazon Warehouse to find cheap used books, which are often as good as new.
- Movies and music. Many of the same places that sell used books also sell used DVDs, Blu-Rays, and CDs. No need to spend money on a new disc when you can get a used one for less money online, at a garage sale or in the thrift shop. Of course, there’s also the library, where movies and music are free for the (temporary) taking and cheap when the library holds a sale. You can also purchase a fire stick and watch free movies all day long on your tv.
- Sports gear. How many times have you started a sport [or your child] and quit after one season? Used baseball gloves are broken in and softer than new ones. Buying new weights is such a waste when they never wear out. It is not uncommon to see home gyms on Craigslist, thrift stores, and garage sales any day of the week. Go shop at stores like Play it Again Sports.
- Musical Instruments. Always have a used instrument appraised by a dealer or just buy a used one from a music store. You can also rent but if you are going to continue playing for years to come, it is cheaper to buy right out.
- Jewelry. Jewelry has the highest markup of any item you will every purchase. Just be sure and get an appraisal if you buy from an individual or online. Check out estate sales and auctions where the jewelry has already been appraised as well. Pawn shops offer appraisals as well.
- Pets. You will never find a more appreciative animal that one from a rescue shelter. Some people think these animals are sick or mean but they were just abandoned. Why spend hundreds on an animal for appearance when some breeders are not properly caring for the animals and you will end up with a sick one you paid hundreds for? The $50 puppy from the pound will give you as many kisses as the $500 one from the breeder. Remember, second-hand dogs make first-class pets!
Ref. MSN, Moneytalksnews.com
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