Although 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. My grandma advised me years ago that I should never buy a new car. She explained I could possibly be better off finding a car a couple of years old with reduced mileage. Based on her reasoning, any car I acquired should be working 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 logical and in buying an older car there are other considerations that bring weight to this argument. I am now look at the savings that can be made any time you buy a car that has been on the road a while and yet still relatively new.
I don’t know if you are aware of it or not but as soon as you buy a new car and drive it off the car lot the value of the car just drops by thousands of dollars. A purchase transaction of say $25,000 for a new car will not have been good for you even though you think it was. Once you drive that car off of the lot it could possibly now only be worth $20,000. The loss of $5,000 dollars can occur in that brief space of time and those initial miles covered.
Go on and purchase a new car if you think I am being extreme. Then simply drive it no other place else but directly home. Go back to the showroom the day after and find out what valuation they put on your car then. Most likely for that $25,000 car you bought yesterday they will only offer you $15,000 to $20,000 for the trade in value.
This has been the marketplace tradition for many years. This is changing in a number of cases where there is a thirty day window to get a 100% trading in valuation for your car from the original dealer. You’ll still be $5000 down after those 30 days have elapsed. You might perhaps make a bigger loss if you try to find a buyer for your car yourself.
Now whenever 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. In addition to this, any problems with the car should have been ironed out just as my grandma advised. So when you look at it like this, by purchasing a pre owned car with low mileage you will actually be getting more for your money than if you bought a new car at the dealership.
This is just something to take into account the next time you are considering getting a new car. You can come across great value if you’re able to resist the enticement of a brand new car.