Monthly Archives: October 2014

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Save Your Money By Purchasing An Older Car Rather Than A New One

Brand-new cars are incredibly attractive especially sitting in one for the first time but there are good reasons to purchase one that is a couple of years old. My nanna told me years ago that I shouldn’t buy a new car. Her help and advice seemed to be to find a car that had not clocked up a great number of miles and was around two years old. This should mean that the vehicle I ended up owning was in fairly good order especially since any work that had been needed on it up to that point would have been performed.

There are more positive aspects to purchasing a moderately older car in addition to those above which I still follow now whenever I decide to purchase a car. On this page I will demonstrate to you how you can save thousands by buying a fairly new but used car.

I don’t know if you are aware of it or not but whenever you buy a new car and drive it off the dealership the value of the car just drops by thousands of dollars. A sale transaction of say $25,000 for a new car will not have been beneficial for you even if you think it was. The amount may be as low as $20,000 when you first wave goodbye to the car dealer. So in a matter of a couple of minutes and a few miles you just forfeited $5,000.

If you think I am just exaggerating, go and buy a new car. After you have, besides going home, you shouldn’t drive anywhere else. Go back to the showroom the day after and find out what value they set on your car then. Inside the space of a day, you may learn that the car you paid $25,000 for has a suggested trade price in the range of $15,000 to $20,000.

Historically, this is merely how things worked in the trade. It’s transforming in a few cases where there is a thirty day window to get a 100% trading in valuation for your car from the original dealer. Essentially, after 30 days, you still have to acknowledge that you are looking at a loss of $5,000. This shortage might be greater if merely selling the car is something you are considering.

That immediate reduction in value is something you will not have to cope with if you decide to buy a car that is say 2 years old. Additionally, any troubles with the car should have been ironed out just as my grandma advised. The comparison between a new car and a used car without a lot of miles, is in favor of the latter on this basis.

It is worthwhile remembering these details whenever you are making car purchase decisions. If you don’t mind missing out on that new car smell you can end up getting a much better deal.