Buying a car which has been on the road between one and two years can make sense although we all like the idea of having a new one and the feelings that come with that. I was encouraged against purchasing new cars by my own grandma several years ago. Her help and advice was to find a car that had not clocked up a great number of miles and was around two years old. Based on her thoughts, any kind of car I acquired should be running well and if there had been anything needing attention, this would already have been carried out.
Even though this made sense to me and I have been 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 expand further on why buying a car that is not too old can result in saving you a lot of money.
The truth 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. 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. The value could possibly be as low as $20,000 as soon as you wave goodbye to the car dealer. Losing $5,000 dollars can happen in that short space of time and those initial miles covered.
If you think I am just exaggerating, go and buy a new car. If you do, just travel in it straight to your house. Then the following day bring the car back in the dealer and ask them how much you can get for a trade in. No doubt for that $25,000 car you invested in yesterday they will offer only you $15,000 to $20,000 for the trade in value.
In past times, this is simply how things worked in the trade. But now a number of dealerships are offering you a 100% trade in price for 30 days after you buy the car. Essentially, after 30 days, you have still got to accept that you are looking at a loss of $5,000. This shortage might be greater if merely selling the car is something you are considering.
That immediate lowering of value is something you will not have to deal with if you decide to buy a car that is say 2 years old. In addition to this, any problems with the car should have been ironed out as my grandma advised. The contrast between a new car and a used car with not a lot of miles, is in favor of the latter on this basis.
This is simply something to take into account the next time you are making plans for getting a new car. It is possible to uncover great value if you possibly can resist the temptation of a brand new car.