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 explained years ago that I shouldn’t ever buy a new car. A car that was around the two year mark with not a lot of mileage is what she said I needed. Her thinking behind this was 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.
While this made sense to me and I happen to be living by that principle ever since, there can be other reasons why buying a car a few years old is a good choice. I will 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.
The truth that a new automobile’s value reduces by thousands once you have driven away from the car dealer is a factor you have maybe not thought about. Perhaps you believe you have bought a car that is the best value for money if you paid $25,000 for instance but in reality you haven’t. Once you drive that car off of the lot it could possibly now only be worth $20,000. Which means that in a matter of a minute or two and a few miles you just lost $5,000.
Go ahead and purchase a new car if you think I am being extreme. As soon as you have, besides going home, don’t drive anywhere else. In terms of the amount your car will be worth the next day, just go back to precisely where you bought the car and see how much they would be prepared to give you. No doubt for that $25,000 car you bought yesterday they will offer only you $15,000 to $20,000 for the trade in value.
Historically, this is just how things worked in the trade. These days a number of dealerships are offering you a 100% trade in worth for 30 days after you buy the car. But as soon as those 30 days have ended, you are out of that $5,000 no matter how you look at it. This deficit might be greater if merely selling the car is something you are looking at.
At this point when you buy a car that is a few years old you won’t be losing that instant decline when you drive it off the lot. If perhaps there have been issues with the car these should have already been solved as my grandmother originally stated. The value for money of a low mileage older car is a lot more than purchasing a new car from a automotive dealer when you take all of this into consideration.
It’s worthwhile remembering these factors whenever you are making car purchase decisions. You can find great value if you can resist the temptation of a brand new car.