Save Your Valuable Dollars By Purchasing An Older Vehicle Rather Than A New One
Even though everybody enjoys 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 thing I was warned against in the past by my grandmother. An automible that was around the two year mark with not so much mileage is specifically what she said I needed. Based on her thinking, any kind of car I acquired should be operating well and if there had been anything needing attention, this would already have been carried out.
While this made sense to me and I had been living by that concept ever since, there are actually other reasons why buying a car a few years old is a good choice. I will now expand further on just why buying a car that is not overly old can result in saving you a bunch of money.
I don’t know if you realize it or not but whenever you buy a new car and drive it off the car lot the value of the car just drops by thousands of dollars. Maybe you imagine 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 could possibly now only be worth $20,000. The truth is for the period of that first journey you could have taken a hit of $5,000 and this occurred in just a few minutes of time.
If you think maybe I am exaggerating, go and purchase a new car. If you do, simply travel in it directly to your house. Head off to the showroom the day after and check out what worth they put 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 continues to be the market norm for many years. There are situations now where for approximately 30 days a dealer will give you the full original value back if you are trading in your car. Essentially, after 30 days, you have still got to accept that you are looking at a loss of $5,000. You might perhaps make a bigger loss if you try to locate a buyer for your car yourself.
That instantaneous decline in value is something you will not have to deal with if you decide to buy a car that is say 2 years old. Additionally, any problems with the car should have been ironed out as my grandma advised. So when you consider it that way, by purchasing a pre owned car with low usage you will actually be getting more for your money than if you bought a new car at the dealership.
It is well worth remembering these factors whenever you are making car purchase decisions. You may need to give up the attraction of a new car to wind up with the most cost effective transaction.