Purchasing a car which has been on the road between one and two years can make sense although we all like the idea of having a new one as well as the feelings that come with that. I was encouraged against acquiring new cars by my own grandma a long time ago. An automible that was around the two year mark with not so much mileage is specifically what she said I needed. Based on her thoughts, any kind of car I acquired should be operating well and if there had been anything needing attention, this would already have been carried out.
Those rules are something I still follow 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 lots of money.
I’m not really 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. A purchase transaction of say $25,000 for a new car will not have been useful to you even if you think it was. As soon as you drive that car off the lot it could possibly now only be worth $20,000. The loss of $5,000 dollars can occur in that quick space of time and those initial miles covered.
Go on and purchase a brand new car if you believe I am being extreme. Then drive it nowhere else but immediately home. In terms of how much your car would be worth the next day, just go back to where you bought the car and see how much they would be prepared to give you. For trading in the car you might expect anywhere between $15,000 and $20,000 and this covers a car you got for $25,000 the day before.
This has been the market norm for many years. It’s transforming in a few situations where there is a thirty day window to get a 100% trading in valuation for your car from the original dealer. Essentially, after 30 days, you’ve still got to come to grips that you are looking at a loss of $5,000. You could perhaps make a more substantial loss if you try to get a buyer for your car yourself.
A two year old car will not suffer that kind of deficit when you are purchasing it from a car dealer in the same way. Not forgetting like my grandmother explained, any glitches the car may have, will have been figured out by then. The contrast between a new car and a used car not having a lot of miles, is in favor of the latter on this basis.
It really is well worth remembering these factors whenever you are making car purchase decisions. Unless you mind missing out on that new car smell you can end up getting a much better deal.