Most of us like the idea of buying something shiny and new, but that’s not always the best option for our budget. Despite the creative advertising campaigns that draw us in, remember buying new also means high mark ups and high rates of depreciation. Here are five things we should consider buying used to save money.
That “new car smell” sure is enticing, but don’t forget that your new ride comes high dollar signs. There are many reasons why buying a used vehicle is better for your bottom line. One reason is that the original owner has already absorbed the depreciation associated with buying new. For example, if you buy a $30,000 car and sell it down the road, chances are you’ll be hit with depreciation of at least half the original cost. Secondly, buying used also means you’ll see lower insurance premiums, which can benefit your monthly budget.
Styles change quicker than the blink of an eye, so instead of dropping serious dough on a brand-new wardrobe, consider hitting up your local consignment store. Many social media sites also provide access to high-end consignment or resale groups, offering quality clothing and accessories at reduced prices.
As children bounce from sport to sport, you could end up spending an arm and a leg on various types of equipment. Instead of buying new at big retailers like Academy Sports, check out other options such as Play It Again Sports. This chain sells quality sporting goods for low prices and also allows customers to trade in or consign their used sports equipment.
Think about it: how often do you really go back and re-read your favorite page-turner? Chances are once they’re read, they go straight to the shelf to collect dust. Buying a new book may not seem like a huge purchase, but think about how much you’re spending over time. Instead of buying new, check out your local book exchange or online sites like eBay or Abe Books.
Kids grow so quickly it’s hard to keep up. They barely stay in one size clothing for a significant period of time. Don’t make the mistake of buying them a brand-new closet full of clothes for every season. Instead take advantage of family hand-me-downs or gently used clothing from second-hand shops. You’ll be amazed at the name-brand items you can find if you’re willing to take the time to look.