One of the best ways to save money and keep it in your community is to buy used. This can be done with everything from automobiles, furniture, power tools, lawn equipment, hand tools, bicycles, camping gear, sports equipment, construction material and just about any other kind of hard good and even some soft goods like clothes. Buying used means that you’ll enjoy a 30-90% reduction off of original price and if you use a local thrift store or buy from a private party virtually all of that money stays in the community.
Let’s look at automobiles as an example. The minute you drive a new car off the show room lot it loses 20% of it’s value. That’s 20% that goes directly into the pockets of the wealthiest people in the country. On a thirty thousand dollar auto that’s $6000. So what do you do? You buy used. You want a new car. Don’t buy one. Instead buy a car that has less than 10,000 miles on it.
Let’s take an example. Say you want to buy a Chevrolet Malibu. To buy the LTZ model new you’re going to pay about $30k. If instead you spend that $30k on a used car you can get a 2014 Chevrolet Equinox, a 2011 Audi Q5, a 2009 Dodge Challenger, a 2006 BMW M5, or a 2009 Corvette. By buying a car that is one to five years old you upgrade your ride and keep a bigger portion of those dollars in the community.
Now there are some drawbacks to this, like the warranty will have less time on it or the car could have been in an accident. So you’ll have to do your due diligence. When you buy from a dealer or a private party have the car checked out by an auto body person and an auto mechanic that you trust.
Also, if you use a local dealer rather than one of the manufacturer’s franchises; more of your money will stay in the community, many times the shop rate is lower than the franchises and the customer service is often more personal.