Even though everyone loves 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. I was advised against buying new cars by my own grandma several years ago. Her recommendation was to find a car that had not clocked up a great number of miles and was around two years old. Based on her thinking, whatever car I acquired should be running well and if there had been anything needing attention, this would already have been carried out.
There are other advantages to purchasing a slightly older car in addition to those above which I still follow now whenever I decide to purchase a car. I will now expand further on the reason why buying a car that is not too old can result in saving you a lot of money.
The fact that a new car’s value diminishes by thousands once you have driven away from the car dealer is a factor you have maybe not thought about. Therefore if you buy a car that set you back $25,000 and you thought you got a great deal, you really didn’t. The value could possibly be as low as $20,000 when you first wave goodbye to the car dealer. This means that in a matter of a minute or two and a few miles you just forfeited $5,000.
Splash out on a new auto, if you feel I am actually being too alarmist here. Then drive it nowhere else but straight home. Go back to the showroom the day after and find out what valuation they set on your car then. Within the space of a 24-hour period, you may find that the car you paid $25,000 for has a suggested trade price in the range of $15,000 to $20,000.
Over time this has been the typical approach of doing things. This is changing in a few instances 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 have still got to come to grips that you are looking at a loss of $5,000. You can perhaps make a greater loss if you try to get a buyer for your car yourself.
A two year old car will not likely bear that kind of decrease when you are purchasing it from a car dealer in the same way. If perhaps there has been issues with the car these should have already been solved as my grandmother originally stated. So if you look at 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.
So when buying a new car, these are all issues that you need to consider. You may have to forfeit the attraction of a new car to wind up with the most cost effective transaction.