While everybody enjoys 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. Investing in a new car is something I was warned against in the past by my grandmother. Her help and advice appeared to be to find a car that had not clocked up a great number of miles and was around two years old. Based on her thinking, 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.
There are additional benefits to purchasing a moderately older car in addition to those above which I still follow now whenever I decide to purchase a car. In this article I will clarify to you how you can save thousands by purchasing a fairly new but used car.
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. Any purchase transaction of say $25,000 for a new car will not have been useful to you even if you think it was. Once you depart the car display room, a new valuation of $20,000 could be the asking price for your car. In fact for the period of that first journey you will have taken a hit of $5,000 and this occurred in just a few minutes of time.
Splash out on a new vehicle, if you think maybe I am being too alarmist here. If you do, just travel in it directly to your house. Then the next day bring the car back to the dealer and see how much you can get for a trade in. Within 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.
Over the years this has been the normal approach of doing things. However right now some dealerships are offering you a 100% trade in price for 30 days after you buy the car. In essence, after 30 days, you’ve still got to come to grips that you are looking at a loss of $5,000. This shortfall could possibly be greater if merely selling the car is something you are looking at.
That instant decline in value is something you will not have to cope with if you decide to buy a car that is say 2 years old. If there were issues with the car these should have already been solved as my grandmother originally stated. The contrast between a new car and a used car without way to many miles, is in favor of the latter on this basis.
So when purchasing a new car, these are all factors that you need to consider. Unless you care about losing out on that new car smell you can end up getting a much better deal.