Road Smarts: Bottom Line On Used-Car Savings

No question buying a used car is cheaper than buying a brand new one. But just how much can you really save? Consumer Reports compared the total cost of ownership over five years—including depreciation, sales tax, interest on financing, fuel costs, maintenance, and repairs. Consumer Reports says used cars are more reliable than they used to be, so a good one probably won’t hit you with big repair costs anytime soon.

So how much can a good used car save you? With a three-year-old Ford Focus, $8,500 after five years. With a three-year-old V-6 Toyota Camry, $13,000. Consumer Reports says with the Camry, that’s the equivalent of getting five years of free gas.

But Consumer Reports says you need to pick the right used car to see big savings. For instance, a popular car like the Mini Cooper doesn’t depreciate a lot, so buying used isn’t going to be a big money saver.

Consumer Reports says the key to getting a money-saving used car is buying one that’s reliable and has been well maintained. Consumer Reports’ Ratings can fill you in on reliability. And to be sure you’ve got a car that’s been well taken care of, have it checked out by an independent, certified mechanic. You can get Consumer Reports’ complete checklist for buying a used car at http://www.consumerreports.org/cro/cars/used-cars/buying-advice/used-car-savings/overview/used-cars-ov.htm.

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