Monthly Archives: November 2013

Permalink to single post

Save Your Cash By Purchasing An Older Auto Rather Than A New One

Brand-new cars are very attractive especially sitting in one for the first time and yet there are good reasons to purchase one that is a couple of years old. My grandmother explained years ago that I shouldn’t buy a new car. Her advice seemed to be to find a car that had not clocked up a lot of miles and was around two years old. Her reasoning behind this seemed to be that any problems 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.

Although this made sense to me and I had 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 will now expand further on the reason why buying a car that is not extremely old can result in saving you lots of money.

I am not sure if you are aware of it or not but whenever you buy a new car and drive it off the dealership the value of the car just drops by thousands of dollars. It could be that you believe 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. As soon as you leave the car lot, a new valuation of $20,000 could be the asking price for your car. In reality 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.

Splash out on a new car, if you think maybe I am really being too alarmist here. Then drive it nowhere else but immediately home. In terms of the amount your car would be worth the next day, just go back to precisely where you bought the car and see how much they would be prepared to give you. Most likely for that $25,000 car you invested in yesterday they will just offer you $15,000 to $20,000 for the trade in value.

In the past, this is merely how things ran in the trade. This is transforming in a few instances where there is a thirty day window to get a 100% trading in valuation for your car from the original dealer. But the moment those thirty days are over, you are out of that $5,000 no matter how you look at it. And in case you try to sell the automobile outright you might wind up losing even more than that.

That immediate reduction in value is something you will not have to cope with if you decide to buy a car that is say 2 years old. In cases where there were issues with the car these should have previously been solved as my grandmother originally stated. The value for money connected with a low mileage older car is higher than purchasing a new car from a automotive dealer when you take all of this into consideration.

Therefore when buying a new car, these are all aspects that you should consider. You might have to give up the attraction of a new car to wind up with the most cost effective transaction.