Purchasing a car that has been on the road between one and two years tends to make sense although we all like the idea of having a new one along with the feelings that come with that. My grandma advised me years ago that I shouldn’t buy a new car. She said I would be better off finding a car a couple of years old with reduced mileage. Based on her reasoning, whatever car I acquired should be operating 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 sensible and in buying an older car there are other considerations that add weight to this argument. I am going to now examine the savings that can be made any time you buy a car that has been on the road a while and yet still fairly new.
I’m not really sure 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. So when you buy a car that amounted to $25,000 and you thought you got a great deal, you really didn’t. The value could possibly be as low as $20,000 as soon as you wave goodbye to the car dealer. The truth is during that first journey you could have taken a hit of $5,000 and this occurred in just a few minutes of time.
If you think I’m exaggerating, go and purchase a new car. If you do, only travel in it straight to your home. Head off to the showroom the day after and check out what worth they put on your car then. Within the space of a day, you may find that the car you paid $25,000 for has a proposed trade price in the range of $15,000 to $20,000.
This continues to be the industry standard for many years. It’s transforming in some cases 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 4 weeks are over, you are out of that $5,000 no matter how you look at it. And in case you try to sell your vehicle outright you could find yourself losing even more than that.
A two year old car is not going to experience that kind of loss when you are purchasing it from a car dealer in the same way. If perhaps 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 with not too many miles, is in favor of the latter on this basis.
Thus when purchasing a new car, these are all aspects that you should consider. You may have to forfeit the attraction of a new car to wind up with the most cost effective transaction.