The biggest way to save on car ownership is to avoid paying the sticker price. A properly maintained year-old vehicle looks and functions like a new car but costs 20% less. If you can save just $4,000 by buying used, then earn 10% on that for 20 years, you’ll be $26,000 ahead. And if you can avoid interest by paying cash rather than financing your ride, you’ll be richer still.
You can find a reliable used car for $5,000. The older the car, the greater the risk, but having a car inspected by a mechanic can reduce it. It’s important to ignore the car commercials. Cars are transportation, not status symbols.
With new homes, you don’t have to worry about repairs. But even factoring in fix-up costs — which you’ll know prior to purchase because you’ll have had a professional inspection done — a pre-owned house will normally save thousands over new.
According to the latest data from the National Association of Home Builders, the average price for a new home in April ($282,600) was about 25% higher than the average price for an existing home ($226,400). Save $50,000 by buying used and you’ll have a lower mortgage payment, freeing up cash to do other important things like saving for retirement.
There’s no good reason to buy a new book. Pick up a copy online or at a local used-book store for pennies on the dollar. Or rediscover the library, which these days may even offer free e-book downloads.
The price of new college textbooks makes buying used especially attractive. You can save even more by checking the library, finding a textbook exchange, or buying an older edition for less. Do some searching and you’ll find lots of ways to get textbooks cheaper or even free.
You may also be able to recoup much of your cost by reselling textbooks in the right places. Money Talks News writer Ricky Michalski bought one of his chemistry texts online for $75 and resold it for $72 four months later.
A new time share is a terrible buy. Reuters recently reported that owners are so desperate to ditch the annual maintenance fees that many time shares are selling for $1. If you can buy a time share for basically nothing, avoiding a developer’s high-pressure sales pitch will make you tens of thousands of dollars richer.
From boats to RVs to bikes, buying used makes sense: They’re terrifically expensive new, they depreciate rapidly, and if someone is selling, it may mean the original owner didn’t have time to use it very much.
Everybody wants to get fit, but few make the time to do it. That means many people have exercise gear they want to unload cheap or even free on sites such as eBay and Freecycle. There are also stores that specialize in used gear, such as Play It Again Sports.
Weights can’t go bad, although you’ll want to test things like treadmills and other more complex equipment. Bicycle helmets are one thing you should buy new for safety reasons. But otherwise, why not buy used?
Used furniture from garage sales and consignment stores is often a great bargain. Just ask Money Talks News writer Angela Colley, who refurnished her home for under $720. Look around your house and mentally add up the amount you’ve spent on new furniture. Had you bought used, you could easily have saved 50%, which means that money would be in your pocket instead of a furniture retailer’s.
Moving sales are great places to save on furniture because shipping furniture is expensive and sellers have a deadline to dump it. Snap up bargains when college dorms and apartments start emptying in the spring.
Added bonus of buying used: You might find stuff that’s better built than today’s.
Some jewelry can depreciate faster than cars do. However, vintage styles can be highly sought after. Best sources include pawnshops, eBay and other auctions. Obviously, if you’re buying something expensive, be knowledgeable or enlist the help of someone who is.
Baby stuff doesn’t get much use — little ones outgrow everything in months. So baby clothes, toys and nursery furniture can be smart used buys.
But there are definitely used baby items to avoid. Car seats and cribs have safety risks, and everything should be checked for product recalls. If you’re not sure, say no. But if you are, you can easily save 50% or more.
Clean out your closet and get a tax deduction by donating the clothes you don’t want to a thrift store. Better yet, take them to a resale shop and make some money. And while you’re there, shop around.
The problem with buying clothes this way is that it might be hard to find exactly what you’re looking for. But if you’re not in a hurry, buying used can cut your clothing budget by 90%. For nicer clothes, head to the thrift and resale stores closest to upscale neighborhoods.
Dishes usually don’t go bad with time, and buying used can save 80% or more. Are friends getting married? Odds are good they’re going to be getting rid of old stuff to make room for wedding gifts. Thrift shops, yard sales and online sites like Freecycle are also good bets. (But beware of dishes that might contain lead).
Used electronics are a mixed bag: Things a few years old might be obsolete or incompatible with the latest technology, and it’s often hard to tell whether there are hardware issues.
However, buying used a few months after a product’s release (or even getting last year’s model) can be a great way to save. Factory-refurbished items have been professionally examined and repaired, and may even come with a warranty. Purchasing from someone you know personally is also good way to avoid lemons. Example? Wait till one of your trend-following friends buys the latest iPhone, tablet or camera. If you’re confident the item has been taken care of, strike a deal.
Electronics are a great place to save because so many people want to have the latest edition of everything. Not being one of those people will make you richer.
These media are a lot like books. Many buy them new, enjoy them once, then toss them on a shelf. If that’s you, recycle your entertainment money and trade them in.
Online-only stores such as Amazon.com and Newegg sometimes feature sales with new copies cheaper than the used ones at brick-and-mortar stores, so be sure to compare prices. But used prices are typically 10% to 70% less than new, with the best deals on the older stuff.
Most people don’t use tools regularly, so it may make sense to borrow or rent them. But well-maintained tools last a long time and are easy to find at yard sales. It can be hard to tell how much life power tools have left, so buy them used only from people you trust.
Bottom line? You can be thousands of dollars richer simply by letting other people take the depreciation hit that accompanies virtually all consumer purchases. While it’s convenient to go into a local store and walk out with something new, there’s a high price to pay for that convenience.
If you can save $10,000 every year by buying used, then compound that money at 10%, in 30 years you’ll be $1.8 million richer than someone who buys the same things new. And what will you have sacrificed? Nothing. After all, those new items become used the minute you bring them home.