Even though 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. Investing in a new car is one area I was warned against before by my grandmother. A car that was around the two year mark with not a lot of mileage is the thing that she said I needed. Based on her thoughts, whatever car I acquired should be working well and if there had been anything needing attention, this would already have been carried out.
Those guidelines are something I still follow today as they are logical and in buying an older car there are other considerations that add weight to this argument. In the following paragraphs I will demonstrate to you how you can save thousands by purchasing a fairly new but used car.
The fact 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. Maybe you believe you have bought a car that is excellent value for money if you paid $25,000 for instance but in reality you haven’t. The valuation might be as low as $20,000 as soon as you wave goodbye to the car dealer. Sacrificing $5,000 dollars can take place in that short space of time and those initial miles covered.
Go on and purchase a new car if you think I am being extreme. Once you have, besides going home, do not drive anywhere else. Return to the showroom the day after and find out what worth they place on your car then. Most likely for that $25,000 car you purchased yesterday they will just offer you $15,000 to $20,000 for the trade in value.
Over time this has been the standard manner of doing things. But now a number of dealerships are offering you a 100% trade in worth for 30 days after you buy the car. But once those 30 days have ended, you are out of that $5,000 no matter how you look at it. You might even make a bigger loss if you try to find a buyer for your car yourself.
Now if you buy a car that is a few years old you won’t be losing that instant devaluation when you drive it off the lot. In addition to this, any problems with the car should have been ironed out just as my grandma advised. Once you consider it like that, by purchasing a pre owned car with low mileage you will actually be getting more for your money than if you bought a new car at the dealership.
Thus when getting a new car, these are all issues that you need to consider. You might have to forfeit the attraction of a new car to wind up with the most cost effective transaction.