Purchasing a car that has been on the road between one and two years can certainly make sense although we all like the idea of having a new one along with the feelings that come with that. I was cautioned against purchasing new cars by my own grandma several years ago. She believed I might possibly be better off finding a car a couple of years old with lower mileage. Based on her thinking, any car I acquired should be operating well and if there had been anything needing attention, this would already have been carried out.
Those rules are something I still abide by today as they are logical and in buying an older car there are other considerations that bring weight to this argument. I will now look at the savings that can be made when you buy a car that has been on the road a while and yet still comparatively new.
I don’t know if you are aware of it or not but once you buy a new car and drive it off the dealership the value of the car just drops by thousands of dollars. Maybe 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 valuation could possibly be as low as $20,000 when you first wave goodbye to the car dealer. In fact during that first journey you will have taken a hit of $5,000 and this occurred in just a few minutes of time.
Go ahead and purchase a brand new car if you believe I am being extreme. Afterward drive it no place else but straight home. When it comes to how much money your car will be worth the next day, just go back to the place you bought the car and see how much they would be prepared to give you. Within the space of a day, you may discover that the car you paid $25,000 for has a recommended trade price in the range of $15,000 to $20,000.
Through the years this has been the normal approach of doing things. This really is shifting in a number of instances where there is a thirty day window to get a 100% trading in valuation for your car from the original dealer. But the moment those 30 days have come to an end, you are out of that $5,000 no matter how you look at it. And if you try to sell your vehicle outright you could end 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. And naturally like my grandmother explained, any bugs the car may have, will have been worked out by then. So when you consider 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.
It is just something to keep in mind the next time you are considering getting a new car. It is possible to uncover great value if you’re able to resist the temptation of a brand new car.