Even though everyone loves 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. My grandma advised me years ago that I should never buy a new car. Her help and advice seemed to be to find a car that had not clocked up a great number of miles and was around two years old. This should imply the automobile 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 done.
There are more positive aspects to purchasing a somewhat older car in addition to those above which I still follow now whenever I decide to purchase a car. I will now expand further on just why buying a car that is not too old can result in saving you lots of money.
The fact that a new vehicle’s value diminishes by thousands once you have driven away from the car dealer is a factor you have maybe not thought about. A sale transaction of say $25,000 for a new car will not have been useful to you even if you think it was. As soon as you leave the car showroom, a new valuation of $20,000 could be the asking price for your car. In reality for the period of that first journey you’ll have taken a hit of $5,000 and this occurred in just a few minutes of time.
Splash out on a new vehicle, if you think I am actually being too alarmist here. If you do, simply travel in it straight to the house. Then the following day bring the car directly back to the dealer and see how much you can get for a trade in. When it comes to trading in the car you might 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 market norm for many years. This really is shifting 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. In essence, after 30 days, you still have to acknowledge that you are looking at a loss of $5,000. This deficit could be greater if merely selling the car is something you are looking at.
That instant lowering of value is something you will not have to cope with if you decide to buy a car that is say 2 years old. Moreover, any problems with the car should have been ironed out as my grandma advised. The comparison between a new car and a used car without too 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. You may need to forfeit the attraction of a new car to wind up with the most cost effective transaction.