The average new car loses about $5000 in value just by driving it off of the lot. It may be nice to have a brand new vehicle but do you really want to have 5,000, one dollar bills flying out of the window while you’re leaving the dealership?
According to a 2007 United States Department of Transportation study there are 254.4 million vehicles that are registered in the country. They also reported that between 16 and 17 million new vehicles are sold annually. This proves that about 85 million dollars are wasted by consumers every year when they buy new cars. Not many people have an extra five grand to throw away.
Previously Leased Vehicles
Buying a previously leased car has an upside to it. I know that many people want that new car smell and enjoy knowing that nobody owned it before them. This won’t be the case but the savings are worth it.
Leased vehicles are required to be maintained according to the necessary maintenance listed in the owner’s manual. Most people don’t want to be charged extra money for lack of maintenance and repair at the end of their lease. This usually results in the new buyer getting a great used vehicle at a reasonable price.
Certified Pre-Owned Vehicles
Be sure to check out your dealership’s pre-owned lot for deals. Most late model, used cars will come with a factory warranty and possibly free scheduled maintenance. This will save you a ton of money.
Although the vehicles on the lot will be certified by the dealership’s mechanics, it is always wise to have your personal and trusted ASE certified technician double check the car. The cost for this will vary but it is usually around ninety dollars. Those ninety dollars will be well spent if there is a problem with the vehicle. Nobody at the dealership will tell you this but if your mechanic finds a problem with one of their cars, they will usually refund that money should you eventually buy a car from their lot.
The best thing is that the previous owner is the one who lost that initial $5,000. They also spent their money paying a car payment for two or three years and probably lost money trading the vehicle in for a new one. If you are concerned with managing your personal finances properly, the people that traded the car in made a huge faux pas. Their error in judgment can oftentimes be your windfall to savings.
When a person dies, the estate usually needs to sell their assets to pay creditors. This includes the vehicles that the person owned. You can usually score a great deal on a late model car.
Recently, my Mom passed away and I had to settle her estate. Three months before, she had purchased a brand new car and paid cash for it. There were other outstanding bills that needed to be paid and I needed to sell the car to do so.
The car had a blue book value of a little less than $12,000. Brand new it cost around $17,000. I sold it for less than $8,000. The buyer got essentially a new vehicle as it only had 3,000 miles on it at half the price.
These deals can be found out there. Watch the newspapers or the internet for estate sales. You can get good cars inexpensively this way.
Roxanne Lane, Contributing Writer from CreditDonkey.com, shares her experience shopping for a new car for her family. Roxanne looks for 0% purchase credit card deals when she wants to finance a large purchase. She recommends you compare the financing option, some manufacturers or car dealers run promotional financing offers that are hard to beat.
|Take 5 minutes for a FREE car warranty quote!
Post Footer automatically generated by wp-posturl plugin for wordpress.