Brand-new cars are extremely attractive especially sitting in one for the first time but there are good reasons to purchase one that is a couple of years old. My nanna told me years ago that I should never buy a new car. She believed I would be better off finding a car a couple of years old with lower mileage. Based on her reasoning, any kind of car I acquired should be running well and if there had been anything needing attention, this would already have been carried out.
Even though this made sense to me and I have been living by that concept ever since, there can be other reasons why buying a car a few years old is a good choice. I will now examine the savings that can be made when you buy a car that has been on the road a while and yet still relatively new.
The fact that a new automobile’s value diminishes by thousands once you have driven away from the car dealer is a factor you have maybe not thought about. A sale transaction of say $25,000 for a new car will not have been good for you even though you think it was. As soon as you leave the car showroom, a new valuation of $20,000 could be the asking price for your car. In fact during that first journey you could have taken a hit of $5,000 and this occurred in just a few minutes of time.
Go on and purchase a brand-new car if you feel I am being extreme. If you do, simply travel in it straight to your home. Head off to the showroom the day after and check out what value they put on your car then. More than likely for that $25,000 car you invested in yesterday they will offer only you $15,000 to $20,000 for the trade in value.
This is still the industry norm for many years. This is shifting in a number of situations where there is a thirty day window to get a 100% trading in valuation for your car from the original dealer. But as soon as those 30 days are over, you are out of that $5,000 no matter how you look at it. And in case you try to sell the automobile outright you may end up losing even more than that.
Now if you buy a car that is a couple of years old you won’t be losing that instant devaluation when you drive it off the lot. Not forgetting like my grandmother explained, any bugs the car may have, will have been figured out by then. The value for money associated with a lower mileage older car is greater than purchasing a new car from a automotive dealer when you take all of this into consideration.
This is simply something to bear in mind the next time you are thinking about getting a new car. It’s possible to come across great value if you’re able to resist the temptation of a brand new car.