Save a Boatload of Cash on Your Next Car!
Everyone enjoys having a brand new car. Everything about the car is pristine. There are no tears in the upholstery, the engine is brand new with no wear at all, and it even smells new. But those things don't last very long, as we all know, and you still have to make the new car payments.
To my amazement you can buy a late model low mileage car for much less. Car dealerships have parking lots full of cars from last year or the year before. It's a mystery where these nearly new cars come from. I recently saw a 2008 Infiniti G35 with 17,000 miles for sale at a dealership that sells new & used Infiniti Los Angeles. There’s a 2008 Hyundai Santa Fe available for ,000 at a Kern County Hyundai dealership. And a 2008 Nissan Sentra for ,000 at a Southern California Nissan Dealer. Who bought this brand new car and then gave it up before it was more than a couple of years old? Maybe the cars were repossessed.Perhaps they buy or lease a new car every year? Who knows?The important point that you can own it for a lot less than they paid – and it's still pretty 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 is substantial. If you had bought that car last year, you would still be happy with it, even if the manufacturer has come out with a new model with more bells and whistles. You would almost certainly still owe more on it than it’s worth on the used car market. Even so, many people want the most current model when they purchase a car. They'll own a used car in short order.
So why not get the benefit of this bias which excessively lowers the market value of used vehicles? Find a model you like. Most car dealers will certify vehicles that are in good condition and have a limited number of miles. Financing is available on a used car, just like on a new car. Most of these used cars are still under their original warranty, and the dealer usually offers extended warranties.
What Has Been Learned Since the Car Was New
Sometimes when a car comes out, there are problems that no one is aware of. Auto reviewers test the new car models and publish their reviews. But they have only a short window of time to conduct their testing. 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. Used car buyer often have some of this information before they decide which car to buy. Besides, even the best-built new cars have recalls over the first few years. With a used car, many of these problems have already been taken care of.
So if you’re watching your budget, like so many of us are, consider buying a late model used car. The dealership that sells new cars is the best place to get a 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.
