Although everybody enjoys the smell of a 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. Purchasing a new car is one thing I was warned against before by my grandmother. She believed I might possibly be better off finding a car a couple of years old with lower mileage. Her reasoning behind this was 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 concept ever since, there are actually other reasons why buying a car a few years old is a good choice. In this article I will clarify to you how you can save thousands by acquiring a fairly new but used car.
The fact that a new car’s value decreases by thousands once you have driven away from the car dealer is a factor you have maybe not thought about. Any purchase transaction of say $25,000 for a new car will not have been beneficial for you even if you think it was. Once you drive that car away from the lot it may now only be worth $20,000. Losing $5,000 dollars can happen in that brief space of time and those initial miles covered.
You should purchase a new car if you think I am being extreme. If you do, just travel in it straight to your home. Then the next day bring the car directly back to the dealer and see how much you can get for a trade in. For trading in the car you might expect anywhere between $15,000 and $20,000 and this is actually for a car you purchased for $25,000 the day before.
Over the years this has been the standard manner of doing things. This is shifting in a number of situations where there is a thirty day window to get a 100% trading in valuation for your car from the original dealer. In essence, after 30 days, you’ve still got to acknowledge that you are looking at a loss of $5,000. And in case you try to sell your vehicle outright you may wind up losing even more than that.
At this time if you buy a car that is a few years old you won’t be losing that instant depreciation when you drive it off the lot. Moreover, any difficulties with the car should have been ironed out just like my grandma advised. The value for money connected with a low mileage older car is a lot more than purchasing a new car from a automotive dealer when you take all of this into consideration.
It’s worthwhile remembering these points whenever you are making car purchase decisions. If you do not mind losing out on that new car smell you can end up getting a much better deal.