The reason you buy used is to avoid the big, initial loss in value from the depreciation that happens as soon as you drive a new car off the lot.
But now those who have followed this advice have a one-time chance to upgrade to a new car without feeling any tightwad guilt.
That’s because the cash-for-clunkers rebates of up to $4,500 will offset most if not all of the depreciation from buying a new vehicle.
So if you’ve been rattling around town in a jalopy that gets 18 miles per gallon or less and you can afford to buy a new car (either with cash or a loan that lasts four years or less), now may be the time.
The rebates only apply to the purchase of new vehicles, and there are other restrictions. CLICK HERE to visit Cars.gov, the government’s official Cash-for-Clunkers site.
For more on smart ways to buy and own cars, read:
- Make your car last 250,000 miles
- 16 favorite money rules of thumb
- High-tech cars mean high-priced repairs
- The real reason you’re broke