Save Your Dollars By Purchasing An Older Auto Rather Than A New One
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. Purchasing a new car is one area I was warned against before by my grandmother. A car that was around the two year mark with not too much mileage is the thing that she said I needed. This should mean that 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 carried out.
Those rules are something I still abide by today as they are reasonable and in buying an older car there are other considerations that bring weight to this argument. I am going to now look at the savings that can be made whenever you buy a car that has been on the road a while and yet still relatively new.
I’m not really sure if you are aware of it or not but as soon as you buy a new car and drive it off the dealership the value of the car just drops by thousands of dollars. It could be that you think 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. As soon as you leave behind the car display room, a new valuation of $20,000 could be the asking price for your car. In reality during 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. After you have, apart from going home, you shouldn’t drive anywhere else. Then the following day bring the car back to the dealer and ask them how much you can get for a trade in. More than likely for that $25,000 car you purchased yesterday they will offer only you $15,000 to $20,000 for the trade in value.
In the past, this is just how things ran in the trade. However right now some dealerships are offering you a 100% trade in value for 30 days after you buy the car. Basically, after 30 days, you have still got to come to grips that you are looking at a loss of $5,000. This shortfall might be greater if merely selling the car is something you’re thinking about.
At this time 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 there have been issues with the car these should have long been solved as my grandmother originally stated. The distinction between a new car and a used car with not way to many miles, is in favor of the latter on this basis.
It’s worth remembering these factors whenever you are making car purchase decisions. It is possible to find great value if you’re able to resist the temptation of a brand new car.