Brand-new cars are very attractive especially sitting in one for the first time however there are good reasons to purchase one that is a couple of years old. I was cautioned against acquiring new cars by my own grandma many years ago. She believed I could possibly be better off finding a car a couple of years old with low mileage. Based on her thinking, any 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 theory ever since, there are actually other reasons why buying a car a few years old is a good choice. I will now expand further on the reason why buying a car that is not too old can result in saving you lots of money.
The truth that a new automobile’s value decreases by thousands once you have driven away from the car dealer is a factor you have maybe not thought about. Maybe you imagine you have bought a car that is the best value for money if you paid $25,000 for instance but in reality you haven’t. Once you leave the car showroom, a new valuation of $20,000 could be the asking price for your car. So in a matter of a minute or two and a few miles you just forfeited $5,000.
If you think I am exaggerating, go and get a new car. If you do, just travel in it straight to your house. 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 might expect anywhere between $15,000 and $20,000 and this is for a car you got for $25,000 the day before.
This is still the marketplace standard for many years. This really is shifting in a few cases where there is a thirty day window to get a 100% trading in valuation for your car from the original dealer. In essence, after 30 days, you still have to acknowledge that you are looking at a loss of $5,000. You could even make a bigger loss if you try to get a buyer for your car yourself.
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. In cases where there have been issues with the car these should have long been solved as my grandmother originally stated. The value for money of a low mileage older car is higher than purchasing a new car from a car dealership when you take all of this into consideration.
It’s simply something to keep in mind the next time you are thinking about getting a new car. You may need to forfeit the attraction of a new car to wind up with the most cost effective transaction.