Choosing between buying a new automobile and a new-to-you used vehicle can be difficult. Many people are attracted to the idea of a brand new, just off the factory floor car or truck; but before you make the leap into a high sticker price and hefty monthly payment purchase, there is one important thing to consider: long term value.
One of the biggest things people consider when making an automobile purchase is resale value. Most of us do not hold onto a car or truck for its full lifespan. Many of us trade in vehicles, once the payments are done, for something new. If you are one of these car buyers, you may think that buying new is the best way to ensure you get the most on your next trade in.
You may be wrong!
New automobiles plummet in value the second they move off the lot. Once you put your first mile on that vehicle, it is considered used. You can expect an automobile to lose thousands of dollars in value, simply because you drove it home. That means you’re making payments on a vehicle that almost instantly is worth less than what you’re paying for. With a used car, you can find out the value of the car or truck with a little research and see the depreciation trends. Each year the car is going to lose some of its overall value, but if maintained well, it should stay on pace with your payments. Over the long term a used vehicle’s depreciation may be better than a newer model.
One thing that dictates the value of a used car is reliability. Used automobiles that are known for their quality are in high demand and, as such, maintain a high value. With this year’s factory models, it takes some time to find out what the overall long term reliability will be. You may find within a year or two that you’ve purchased a vehicle with many flaws that need to be addressed to stay on the road. If this is the case, demand will be low and the vehicle will depreciate faster, leaving you with a vehicle with a poor trade in value.
Used vehicle models have been tested through and through by the drivers that bought them new; you get the benefit of their experiences when choosing a used automobile. Choosing a model that is proven reliable is not only a smart purchase, but will hold its value over time.
New is not always better. Before making a quick purchase on that new automobile, take a look at the vast selection of quality used autos at Auto City car dealership. With autos to suit every need, at prices that you can afford, you’ll be pleasantly surprised at not only the immediate value of the automobiles, but the long term investment qualities a used car can provide as well.