Brand-new cars are extremely attractive especially sitting in one for the first time however there are good reasons to purchase one that is a couple of years old. Buying a new car is something I was warned against before by my grandmother. A vehicle that was around the two year mark with not too much mileage is specifically what she said I needed. 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.
Although this made sense to me and I have been living by that theory ever since, there are actually other reasons why buying a car a few years old is a good choice. I will now expand further on just why buying a car that is not overly old can result in saving you a bunch of money.
I am not sure if you realize 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. Therefore when you buy a car that amounted to $25,000 and you thought you got a great deal, you really didn’t. As you leave behind the car showroom, a new valuation of $20,000 could be the asking price for your car. The loss of $5,000 dollars can happen in that short space of time and those initial miles covered.
Splash out on a new vehicle, if you think maybe I am actually being too alarmist here. Once you have, apart from going home, do not drive anywhere else. When it comes to 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. No doubt for that $25,000 car you bought yesterday they will only offer you $15,000 to $20,000 for the trade in value.
In the past, this is simply how things worked in the trade. However right now some dealerships are offering you a 100% trade in worth for 30 days after you buy the car. Basically, 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 locate a buyer for your car yourself.
That immediate reduction in value is something you will not have to deal with if you decide to buy a car that is say 2 years old. Not forgetting like my grandmother explained, any bugs the car may have, will have been resolved by then. Once you look at it like this, by purchasing a pre owned car with low usage you will actually be getting more for your money than if you bought a new car at the dealership.
This is just something to take into account the next time you are thinking about getting a new car. It’s possible to uncover great value if you can resist the lure of a brand new car.