Even though everyone loves the smell of a completely new car as well as the pride that comes with owning a new car, it could be worth your while to buy a car a year or two old. Purchasing a new car is one thing I was warned against before by my grandmother. A vehicle that was around the two year mark with not too much mileage is the thing that she said I needed. Her reasoning behind this was basically that any difficulties 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.
While this made sense to me and I have been living by that theory ever since, you will find 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 when you buy a car that has been on the road a while and yet still comparatively new.
Right after paying for a new car, it is usually worth a few thousand less right after you leave the car showroom and is something you may not have considered. Perhaps you believe you have bought a car that is excellent value for money if you paid $25,000 for instance but in reality you haven’t. As soon as you drive that car off of the lot it may now only be worth $20,000. Losing $5,000 dollars can take place in that quick space of time and those initial miles covered.
If you think I’m exaggerating, go and purchase a new car. After you have, apart from going home, you shouldn’t drive anywhere else. Go back to the showroom the day after and find out what worth they set on your car then. Most 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.
Historically, this is just how things ran in the trade. There are instances now where for up to 30 days a dealer will give you the full original value back if you are trading in your car. Essentially, after 30 days, you’ve still got to acknowledge that you are looking at a loss of $5,000. You might even make a bigger loss if you try to locate a buyer for your car yourself.
That immediate reduction in value is something you will not have to deal with if you decide to buy a car that is say 2 years old. In cases where there have been issues with the car these should have previously been solved as my grandmother originally stated. So when you consider it like this, by purchasing a pre owned car with low mileage you will actually be getting more for your money than if you bought a new car at the dealership.
So when getting a new car, these are all issues that you should consider. If you do not care about passing up on that new car smell you can end up getting a much better deal.