Law School
Personal Finance

5 Things You Should Never Buy New

Being frugal doesn’t mean you have to give up the niceties in life; you just have to be more creative in acquiring them. Here’s a quick list of luxuries you can buy used and not sacrifice quality.

  1. Cars. Once you drive off the lot in your new car, it depreciates in value by 12%. By Buy a used car, when its rate of depreciation flattens out, you put yourself into a cost-effective automobile that ought to last you several years. And let’s be honest with ourselves. There’s really not much of a difference between the 2004 model and 2007. Car makers just want you to think there is.
  2. Books. I used to be a sucker for buying new books, but then I realized I can get them for much cheaper online. Here’s how I get a hold of books. First, I check my local and school library. If they have it, I just check it out and read it. Cost? Zero dollars. If the library doesn’t have it, then I check Amazon. You can often save up to 60% on books at Amazon. I’ll go to the bookstore to find books I’d like to read. But I hardly ever buy there.
  3. Homes. First, a used home will usually have a lower property tax, as new developments tend to grow in outlying areas that start with little or no tax base. Accordingly, the city often looks to buyers in the new developments to raise revenues for things like police and fire services. All and all, this can result in long-term savings for you. Additionally, a used home is more likely to have a negotiable price, whereas a builder/developer will adopt “take it or leave it” sales tactics
  4. Sporting Goods. If your sports fanatic, sport equipment can get pricey. Instead of buying new, check out Craig’s list or EBay for all your sporting needs.
  5. CDs/DVDs/Video Games. I try to take the same approach with these items that I do with books. Always check Amazon out before you buy CDs/DVDs/Video Games. You might be surprised by the selection of DVD’s your local library has. You can avoid spending money at all on DVDs if you use them. If you watch lots of DVDs or play lots of video games, services like Netflix and Gamefly might be a cost effective way to get your entertainment fix.

[tags]shopping, house shopping, cars, DVD, Netflix, Gamefly[/tags]