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Showing posts from December, 2016

Thinking of cars as investments

Some people are under the impression that people buy used cars because they can’t afford brand new ones. This is sometimes the case but not always. Some people buy used cars not because they can’t afford brand new cars but because they know that buying used cars is a much better financial decision. You don’t realize it until it’s time to sell your car but depreciation is the thing that you pay for the most when buying a brand new car. More than the maintenance, more than the repairs and more than the car’s yearly registration combined. Brand new cars are killed by depreciation right after they roll off the dealership and into your hands. Let’s consider one of the most popular car models in the Philippines as a case study, the Toyota Vios. A brand new 2016 vios E automatic costs about 800k+ here in the Philippines. A 2 nd hand 2015 vios E automatic costs around 450k. In a period of around a year, you’d be losing 350k if you buy a brand new vios. That’s almost half the value of the