Buying a car that has been on the road between one and two years can make sense although we all like the idea of having a new one and the feelings that come with that. My nanna advised me years ago that I should never buy a new car. A vehicle that was around the two year mark with not a lot of mileage is the thing that she said I needed. Her reasons behind this was that any issues that the car may have had will be taken care of and I would be sure that I was getting a car in good working condition.
There are other benefits to purchasing a moderately older car in addition to those above which I still follow now whenever I decide to purchase a car. I will now expand further on why buying a car that is not extremely old can result in saving you lots of money.
I’m not really sure if you understand it or not but as soon as you buy a new car and drive it off the lot the value of the car just drops by thousands of dollars. Which means that if you buy a car that set you back $25,000 and you thought you got a great deal, you really didn’t. As soon as you depart the car display room, a new valuation of $20,000 could be the asking price for your car. Which means that in a matter of a few moments and a few miles you just forfeited $5,000.
Splash out on a new auto, if you think maybe I am really being too alarmist here. If you do, just travel in it directly to your house. Head off to the showroom the day after and find out what value they set on your car then. No doubt for that $25,000 car you bought yesterday they will only offer you $15,000 to $20,000 for the trade in value.
Over the years this has been the typical way of doing things. There are situations now where for up to 30 days a dealer will give you the full original value back if you are trading in your car. But as soon as those 4 weeks have come to an end, you are out of that $5,000 no matter how you look at it. This shortage could possibly be greater if merely selling the car is something you are considering.
A two year old car will not likely bear that kind of deficit when you are purchasing it from a car dealer in the same way. And naturally like my grandmother explained, any glitches the car may have, will have been resolved by then. So when you view it like that, by purchasing a pre owned car with low usage you will actually be getting more for your money than if you bought a new car at the dealership.
It is well worth remembering these points whenever you are making car purchase decisions. If you do not care about passing up on that new car smell you can end up getting a much better deal.