Why buy a used car? And the big answer is, to save money of course. A car is nothing more than a depreciating asset, but required to get around town. If purchased right a used car is the cheapest form of transportation. And cheap doesn’t have to mean that you go out and purchase a beat up little 4 cylinder. I’m talking about purchasing a limited edition of any vehicle with all the bells and whistles. If done right your auto expenses on a top of the line vehicle could run less than $225 per month.

I have purchased 11 new and used vehicles ranging in price from $1,000 to $35,000 in the last 25 years for myself and direct family members and this sequence of events seems to work best. Only after you have been through the process a number of times do you really understand it.

Take for example a 2000 Ford Expedition Eddie Bauer Edition 4x4 with 82,000 miles that I purchased used in 2004 for $14,000. This was a fully loaded car with leather, one small door ding and no dents, sunroof, tow package, power heated seats, 3^rd row seat, with the big engine and transmission. In a nutshell everything you could want, and if you bought it brand new it would cost you $39,000. That is like buying a top of the line vehicle for thirty-six cents on the dollar.

I have put 70,000 miles on it in 3 years, purchased one set of tires for $500 at Costco, oil changes and general service every 3-5,000 miles at Jiffy Lube for around $75 each, and a couple of brake jobs to the tune of $450 each. If I were to sell it today the average price is $8,500 on AutoTrader. So here is a vehicle that I have had for 3 years at a cost of $5,500 or about $152 per month. Add in maintenance of $2,713 or about $75 per month and you have a cost of $225 per month. I can guarantee that you won’t find that operating cost if you lease or purchase a new vehicle.

So here are the steps to purchase a top of the line vehicle: