New cars are extremely attractive especially sitting in one for the first time and yet there are good reasons to purchase one that is a couple of years old. My grandma told me years ago that I shouldn’t buy a new car. She explained I could possibly be better off finding a car a couple of years old with low 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.
Although this made sense to me and I happen to be living by that principle 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 why buying a car that is not overly old can result in saving you a lot of money.
Right after paying for a new car, it is usually worth a few thousand less right after you leave the car showroom and is something you may not have considered. Any purchase transaction of say $25,000 for a new car will not have been useful to you even though you think it was. The instant you drive that car away from the lot it may now only be worth $20,000. Which means that in a matter of a few moments and a few miles you just erased $5,000.
You should purchase a new car if you think I am being extreme. As soon as you have, besides going home, you shouldn’t drive anywhere else. Then the next day bring the car directly back to the dealer and see how much you can get for a trade in. With regards to trading in the car you can expect anywhere between $15,000 and $20,000 and this is for a car you bought for $25,000 the day before.
In past times, this is merely how things worked in the trade. 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. You’ll still be $5000 down after those 30 days have gone by. You might possibly make a more substantial loss if you try to locate a buyer for your car yourself.
At this point when you buy a car that is a few years old you won’t be losing that instant depreciation when you drive it off the lot. If perhaps there were issues with the car these should have long been solved as my grandmother originally stated. Once you consider it that way, by purchasing a pre owned car with low miles you will actually be getting more for your money than if you bought a new car at the dealership.
It’s just something to bear in mind the next time you are making plans for getting a new car. Unless you care about losing out on that new car smell you can end up getting a much better deal.