Brand new cars are very attractive especially sitting in one for the first time and yet there are good reasons to purchase one that is a couple of years old. My grandma advised me years ago that I shouldn’t ever buy a new car. Her recommendation seemed to be to find a car that had not clocked up a lot of miles and was around two years old. Her reasons behind this was that any issues that the car may have had will be taken care of and I would be sure that I was getting a car in good working condition.
Even though this made sense to me and I happen to be living by that theory ever since, you will find other reasons why buying a car a few years old is a good choice. I will now expand further on just why buying a car that is not overly 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 amounted to $25,000 and you thought you got a great deal, you really didn’t. As soon as you leave the car lot, a new valuation of $20,000 could be the asking price for your car. This means that in a matter of a couple of minutes and a few miles you just erased $5,000.
Splash out on a new car, if you feel I am actually being too alarmist here. Afterward drive it no place else but straight home. In terms of how much your car would 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. In the space of a 24-hour period, 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.
In the past, this is just how things operated in the trade. You will discover situations now where for as much as 30 days a dealer will give you the full original value back if you are trading in your car. You will still be $5000 down after those 30 days have passed. And in case you try to sell the automobile outright you might wind up losing even more than that.
At this point whenever 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 troubles with the car should have been ironed out just like my grandma advised. The value for money connected with a decreased mileage older car is greater than purchasing a new car from a automotive dealer when you take all of this into consideration.
It is worth remembering these factors whenever you are making car purchase decisions. You may need to sacrifice the attraction of a new car to end up with the most cost effective transaction.