23 Jun Does it really have to be brand new?
There can be tremendous pressure exerted on the American consumer when they start looking to buy some sort of product to fill a need that they have. Whether the consumer is looking for a vehicle, a new telephone, or even a house, they may feel embarrassed to purchase anything other than a brand new product.
Advertising executives and peer pressure often combine their forces to make it seem like anything less is simply not good enough. But financially speaking, is buying new always the best course to take?
Remember, the question is not simply “Can I afford this?” The question should be: “Is this the best way to manage my money?” When talking about the difference between the newest iPhone and the model from last year, the price difference can easily be one or two hundred dollars for basically the same functions. When talking about a vehicle, the difference can be thousands of dollars. Let’s look at an example.
When you are in the market for a car, you can easily expect to spend tens of thousands of dollars for the latest model, especially if it is a luxury brand like a Mercedes or BMW. Even if you had the money to buy whatever you want, there are good reasons to buy a car that is two or three years old- in fact, there are about ten thousand good reasons to do so. You can
save a huge amount of money by helping dealers get slightly older and perhaps pre-owned cars off of their lots. And if you buy an extended warranty, you can drive stress-free for the next six years in a car that looks and feels brand new. And what will you do with that $10,000 that you saved? Invest it in your future!
There can be a huge amount of pressure to constantly get rid of anything old and to purchase something new. But in many cases, it just doesn’t made good fiscal sense to do so. By buying high-quality but lower-priced goods, you can keep a comfortable life, look good, feel good, and still have something to invest in your financial future.