Deciding On A Car That Is Around 2 Years Old Is Cost Effective
Although we all love the smell of a 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. I was encouraged against acquiring new cars by my own grandma several years ago. She said I would be better off finding a car a couple of years old with reduced mileage. This should mean that the car 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 carried out.
Those guidelines are something I still adhere to today as they are reasonable and in buying an older car there are other considerations that add weight to this argument. I am going to now examine the savings that can be made any time you buy a car that has been on the road a while and yet still comparatively new.
The fact that a new car’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 good 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 may possibly now only be worth $20,000. 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.
Go ahead and purchase a new car if you believe I am being extreme. Then simply drive it nowhere else but straight home. Head off to the showroom the day after and see what valuation they put on your car then. In the space of a 24-hour interval, you may find that the car you paid $25,000 for has a suggested trade price in the range of $15,000 to $20,000.
This is still the marketplace tradition for many years. This really is transforming 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. Essentially, after 30 days, you still have to accept that you are looking at a loss of $5,000. This shortage could be greater if simply selling the car is something you are looking at.
A two year old car is not going to experience that kind of loss when you are purchasing it from a car dealer in the same way. If there have been issues with the car these should have long been solved as my grandmother originally stated. The value for money connected with a low mileage older car is higher than purchasing a new car from a car dealership when you take all of this into consideration.
It is worth remembering these details whenever you are making car purchase decisions. You may have to give up the attraction of a new car to find yourself with the most cost effective transaction.