Brand new cars are very attractive especially sitting in one for the first time but there are good reasons to purchase one that is a couple of years old. I was cautioned against purchasing new cars by my own grandma a long time ago. She said I would be better off finding a car a couple of years old with reduced mileage. Based on her reasoning, any kind of car I acquired should be working well and if there had been anything needing attention, this would already have been carried out.
Those principles are something I still follow today as they are reasonable and in buying an older car there are other considerations that add on weight to this argument. On this page I will explain to you how you can save thousands by purchasing a fairly new but used car.
I am not sure if you understand it or not but once you buy a new car and drive it off the car lot the value of the car just drops by thousands of dollars. Which means that when you buy a car that cost you $25,000 and you thought you got a great deal, you really didn’t. As you leave behind the car lot, a new valuation of $20,000 could be the asking price for your car. Sacrificing $5,000 dollars can happen in that short space of time and those initial miles covered.
If you feel I am just exaggerating, go and buy a new car. If you do, only travel in it directly to your home. With regards to the amount your car will be worth the next day, just go back to the place you bought the car and see how much they would be prepared to give you. Most likely for that $25,000 car you bought yesterday they will just offer you $15,000 to $20,000 for the trade in value.
Over the years this has been the standard way of doing things. It’s transforming in some 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’ve still got to acknowledge that you are looking at a loss of $5,000. You can even make a greater loss if you try to get a buyer for your car yourself.
A two year old car will not likely bear that kind of loss when you are purchasing it from a car dealer in the same way. If there have been issues with the car these should have already been solved as my grandmother originally stated. The value for money associated with a low mileage older car is higher than purchasing a new car from a dealer when you take all of this into consideration.
It’s well worth remembering these factors whenever you are making car purchase decisions. You might have to forfeit the attraction of a new car to wind up with the most cost effective transaction.