Purchasing a car which has been on the road between one and two years can certainly make sense although we all like the idea of having a new one along with the feelings that come with that. Buying a new car is one area I was warned against before by my grandmother. A car that was around the two year mark with not too much mileage is the thing that she said I needed. This should show that the automobile I ended up owning was in fairly good order especially since any work that had been needed on it up to that point would have been done.
While this made sense to me and I happen to be living by that principle ever since, there are actually other reasons why buying a car a few years old is a good choice. I am going to now verify the savings that can be made any time you buy a car that has been on the road a while and yet still fairly new.
The fact that a new car’s value diminishes by thousands once you have driven away from the car dealer is a factor you have maybe not thought about. Any purchase transaction of say $25,000 for a new car will not have been beneficial for you even if you think it was. The valuation could possibly be as low as $20,000 when you wave goodbye to the car dealer. Which means that in a matter of a few moments and a few miles you just erased $5,000.
If you think I am exaggerating, go and get a new car. Afterward drive it no other place else but straight home. Then the next day bring the car back in the dealer and ask them how much you can get for a trade in. With regards to trading in the car you could expect anywhere between $15,000 and $20,000 and this is actually for a car you got for $25,000 the day before.
Historically, this is simply how things worked in the trade. But now a number of dealerships are offering you a 100% trade in price for 30 days after you buy the car. You still will be $5000 down the moment those 30 days have gone by. And when you try to sell the automobile outright you may find yourself losing even more than that.
A two year old car is not going to experience that kind of loss when you are purchasing it from a car dealer in the same way. In addition to this, any difficulties with the car should have been ironed out just as my grandma advised. The comparison between a new car and a used car with not too many miles, is in favor of the latter on this basis.
It’s just something to bear in mind the next time you are thinking about getting a new car. If you do not object to passing up on that new car smell you can end up getting a much better deal.