Getting a car which has been on the road between one and two years can certainly make sense although we all like the idea of having a new one as well as the feelings that come with that. I was encouraged against purchasing new cars by my own grandma several years ago. She explained I could possibly be better off finding a car a couple of years old with reduced mileage. Her reasons behind this seemed to be that any problems 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.
Those rules are something I still follow today as they are reasonable and in buying an older car there are other considerations that add on weight to this argument. I will now expand further on why buying a car that is not extremely old can result in saving you lots of money.
I am not sure if you realize it or not but whenever you buy a new car and drive it off the 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 when you think it was. As you leave behind the car display room, a new valuation of $20,000 could be the asking price for your car. In reality in the course of that first journey you’ll have taken a hit of $5,000 and this occurred in just a few minutes of time.
If you think maybe I’m exaggerating, go and buy a new car. If you do, just travel in it directly to the house. When it comes to how much money your car will be worth the next day, just go back to where you bought the car and see how much they would be prepared to give you. For trading in the car you could expect anywhere between $15,000 and $20,000 and this covers a car you purchased for $25,000 the day before.
This continues to be the marketplace standard for many years. This is transforming 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. You still will be $5000 down as soon as those 30 days have elapsed. And when you try to sell the car outright you might end up losing even more than that.
A two year old car will not experience that kind of deficit when you are purchasing it from a car dealer in the same way. Not to mention like my grandmother said, any glitches the car may have, will have been worked out by then. The distinction between a new car and a used car without way to many miles, is in favor of the latter on this basis.
It really is worthwhile remembering these factors whenever you are making car purchase decisions. It’s possible to find great value if you’re able to resist the temptation of a brand new car.