Purchasing something used but in good to excellent condition is wise when it comes to houses and cars. If you buy wisely (location, location, location!), and invest in a kitchen or bathroom makeover, your house might even raise in value. A brand new car driven off the lot can depreciate up to a full 11%!*
However, if you purchase a used car or home and it then it has you running for repairs frequently, it is no longer a bargain. The money you saved in the initial sale is being poured post-transaction. And there is the silent, but insidious opportunity cost: time. The time you spend running to the mechanic instead of oh…I don’t know…writing your blog or short story,perhaps. Or, maybe the cost is the stress of rushing to work post-mechanic instead of drinking your coffee and planning your day. These are big opportunity costs!
I’m just saying…if you saved a lot of money on the three cars you own, and all three breakdown at the same time, it might be that your opportunity costs outweigh the initial savings and maybe – just maybe – it’s time to make a change.