Although we all love the smell of a brand new car as well as the pride that comes with owning a new car, it could be worth your while to buy a car a year or two old. My grandmother told me years ago that I shouldn’t ever buy a new car. Her recommendation appeared to be to find a car that had not clocked up too many miles and was around two years old. This should mean that the car I ended up owning was in fairly good order especially since any work that had been needed on it up to that point would have been carried out.
Even though this made sense to me and I had been living by that principle 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.
The truth that a new vehicle’s value reduces by thousands once you have driven away from the car dealer is a factor you have maybe not thought about. Perhaps 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. The instant you drive that car off the lot it may possibly now only be worth $20,000. This means that in a matter of a few moments and a few miles you just lost $5,000.
If you think I am exaggerating, go and get a new car. If you do, only travel in it right to your home. Then the next day bring the car back in the dealer and ask them how much you can get for a trade in. When it comes to trading in the car you might expect anywhere between $15,000 and $20,000 and this is for a car you purchased for $25,000 the day before.
Over the years this has been the standard manner of doing things. There are cases now where for approximately 30 days a dealer will give you the full original value back if you are trading in your car. In essence, after 30 days, you have still got to come to grips that you are looking at a loss of $5,000. You could perhaps make a greater loss if you try to find a buyer for your car yourself.
A two year old car will not bear that kind of deficit when you are purchasing it from a car dealer in the same way. In addition to this, any troubles with the car should have been ironed out as my grandma advised. So when you view it that way, 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.
Therefore when getting a new car, these are all factors that you must consider. You might have to give up the attraction of a new car to find yourself with the most cost effective transaction.