New cars are incredibly 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 grandmother explained years ago that I shouldn’t ever buy a new car. A car that was around the two year mark with not so much mileage is specifically what she said I needed. This should imply 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 other advantages to purchasing a somewhat older car in addition to those above which I still follow now whenever I decide to purchase a car. I am going to now examine the savings that can be made when you buy a car that has been on the road a while and yet still relatively new.
I am not sure if you understand it or not but once you buy a new car and drive it off the car lot the value of the car just drops by thousands of dollars. So in the event you buy a car that cost you $25,000 and you thought you got a great deal, you really didn’t. As soon as you drive that car off the lot it may now only be worth $20,000. This means that in a matter of a couple of minutes and a few miles you just lost $5,000.
If you think I am just exaggerating, go and get a new car. As soon as you have, besides going home, you shouldn’t drive anywhere else. Go back to the showroom the day after and find out what valuation they place on your car then. Most likely for that $25,000 car you purchased yesterday they will offer only you $15,000 to $20,000 for the trade in value.
This is still the market standard for many years. This is shifting in some instances 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. And in case you try to sell the automobile outright you could wind up losing even more than that.
A two year old car is not going to bear that kind of decrease when you are purchasing it from a car dealer in the same way. In cases where there were issues with the car these should have previously been solved as my grandmother originally stated. 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 is just something to bear in mind the next time you are making plans for getting a new car. You can find great value if you’re able to resist the enticement of a brand new car.