While everyone loves the smell of a brand 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. Buying a new car is one thing I was warned against before by my grandmother. A car that was around the two year mark with not so much mileage is specifically what she said I needed. Based on her thoughts, whatever car I acquired should be operating well and if there had been anything needing attention, this would already have been carried out.
Those guidelines are something I still abide by today as they are sensible and in buying an older car there are other considerations that add on weight to this argument. I will now expand further on just why buying a car that is not too old can result in saving you a lot of money.
The truth 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. It could be that you imagine 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 leave the car display room, a new valuation of $20,000 could be the asking price for your car. In fact in the course of that first journey you’ll have taken a hit of $5,000 and this occurred in just a few minutes of time.
If you think maybe I am just exaggerating, go and buy a new car. After you have, besides going home, do not drive anywhere else. Go back to the showroom the day after and find out what valuation they put on your car then. Within the space of a 24-hour interval, you may discover that the car you paid $25,000 for has a suggested trade price in the range of $15,000 to $20,000.
Over time this has been the typical approach of doing things. There are situations now where for as much as 30 days a dealer will give you the full original value back if you are trading in your car. But as soon as those 30 days are over, you are out of that $5,000 no matter how you look at it. This shortage could possibly be greater if simply selling the car is something you are looking at.
A two year old car is not going to bear that kind of decrease 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 value for money of a low mileage older car is greater than purchasing a new car from a automotive dealer when you take all of this into consideration.
It is just something to take into account the next time you are thinking about getting a new car. Unless you care about missing out on that new car smell you can end up getting a much better deal.