Buying a Brand New Car? Wait a Second!
Everyone loves getting a new car. Everything is perfect. There is no wear, the body is perfect with no scratches or dings, and it even has that incomparable new car smell. But all those things go away with time, and you’re left with the car payments of a new car.
Amazingly (at least to me) you can get a low mileage late model car for a a much lower price. There are tons of almost new cars waiting at your local car dealership. I don’t know where these nearly new cars come from. I recently saw a 2008 Infiniti G35 with 17,000 miles for sale at a Riverside used cars dealership. There’s 2009 Ford F-150 available for ,000 at a Green Bay used car dealership. And a 2008 Mitsubishi Galant for ,000 at a dealership that sells new and used cars in Chesapeake. Who would buy a brand new car, take the worst of the depreciation, and let it go while it’s still so new? Maybe they defaulted on their loans.Perhaps they buy or lease a new car every year? Beats me?The fact is that you can buy it for much less than they paid – and it’s still almost new!
Pricing
Logic would say that the price of a used car would be the same as its price new, less the miles that have been driven, any damage, and of course depreciation because last year’s model is not as desirable as this year’s model. That depreciation turns out to be a substantial percentage of the price. If you had purchased that same vehicle last year, you would still be happy with your car, even if the auto maker has come out with a new model. You’d probably still owe more on it than it’s worth. But when they go to buy a car, most people want the latest and greatest. They’ll have a used car within a year.
Why not take advantage of this perception which excessively diminishes the price of used vehicles? Identify a car you like, then find one that’s only a year or two old. Most car dealerships certify cars that have low mileage and are in good condition. You can get good financing terms on a preowned car, just like you can on a new car. Many of these cars are still under warranty by the factory, plus you can buy an extended warranty from the dealer.
More Information is Available Now
Sometimes when a new model is released, there are unknown defects. Many consumer advocate groups and car magazines test the new car models each year and publish the results of their tests. But the tester have a limited amount of time to work with the cars. Some information, like how reliable a car is just isn’t available until thousands of them are on the road over an extended period of time. If you buy a used car, you’ll have some of this type of information available to help you decide which car to buy. Besides, even the best-built new cars have recalls over the first few years. With a preowned car, many of these issues have already been taken care of.
If you are watching your budget, like everyone else is, think about getting a used car with low mileage. An auto dealership that sells new cars is a great place to buy a reliable used car of the same make. They have a good selection, sales people who are familiar with the car, and factory trained technicians who can service your car going forward.
