Buying a car that 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. My nanna explained years ago that I shouldn’t buy a new car. She explained I could possibly be better off finding a car a couple of years old with reduced mileage. Based on her reasoning, whatever car I acquired should be operating well and if there had been anything needing attention, this would already have been carried out.
While this made sense to me and I happen to be living by that concept ever since, there can be other reasons why buying a car a few years old is a good choice. I will now look at the savings that can be made whenever you buy a car that has been on the road a while and yet still relatively new.
After paying for a new car, it can be worth a few thousand less as soon as you leave the car showroom and is something you may not have considered. Therefore in the event you buy a car that cost you $25,000 and you thought you got a great deal, you really didn’t. Once you leave behind the car display room, a new valuation of $20,000 could be the asking price for your car. Losing $5,000 dollars can happen in that brief space of time and those initial miles covered.
You should purchase a new car if you feel I am being extreme. If you do, only travel in it right to your house. In terms of how much money your car would 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. In the space of a 24-hour period, you may learn that the car you paid $25,000 for has a proposed trade price in the range of $15,000 to $20,000.
In the past, this is merely how things ran in the trade. However right now some dealerships are offering you a 100% trade in value for 30 days after you buy the car. You will still be $5000 down as soon as those 30 days have passed. This shortage could possibly be greater if just selling the car is something you’re thinking about.
That immediate lowering of value is something you will not have to contend 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 long been solved as my grandmother originally stated. The contrast between a new car and a used car with not way to many miles, is in favor of the latter on this basis.
This is simply something to keep in mind the next time you are making plans for getting a new car. You may need to forfeit the attraction of a new car to end up with the most cost effective transaction.