Buying A Car: Old Vs. New
With the economy continuing to roil, and pundits claiming that turbulent times remain ahead, millions of would-be car buyers are putting their purchases on hold. Since I’ve always been a proponent of purchasing used vehicles, I thought it might be time for another column extolling their virtues. If you already have your heart set on a brand new truck or SUV, don’t let me stop you from buying it. For the rest of you, let’s revisit some of the reasons why you may want to consider a pre-owned automotive gem.
They Last Longer
Older readers may remember when the most common retort about purchasing a pre-owned vehicle was “you’re going to buy someone else’s headache on its last legs.” These days, all makes and models are built to last a lot longer than those which rolled off the factory floors decades ago. In most cases, a model that is 2 or 3 years old will run just as smoothly as it did when it was originally purchased.
Depreciation
Ah, yes. Depreciation. The bane of every new car buyer. But, cars have always lost most of their value during the first 3 years. It’s an expectation. Savvy buyers wait a few years and purchase them from owners who bought them straight from the showroom floor. In effect, they let others suffer the consequences of depreciation.
So, how much value will a car lose during its first 3 years? It depends on the make and model. Hondas, world-renowned for retaining their value, can be expected to drop approximately 25% over the first few years. On the other hand, a Ford might drop 35%. In light of the fact that the operational efficiency of cars doesn’t suffer during its first few years, this drop in value makes a pre-owned vehicle even more attractive.
Certification
What if you discovered that you could purchase a great used vehicle for thousands of dollars off the sticker price and someone would guarantee that it worked properly? It’s a tempting offer, right? A lot of pre-owned cars are being sold as “certified.” If the vehicle has been certified by the automaker, that means trained automotive engineers have tested and recalibrated the systems. They bring those systems back to the original specifications that were set by the automaker. Pre-owned models that are certified cost a bit more, but the peace of mind can be valuable.
Old Vs. New
We’ll explore this issue in greater detail in the near future. This decision is particularly important in today’s economic environment. The truth is that most people who purchase new vehicles do so either because they’re seduced by the glossy exterior or they can’t stand the thought of buying used. Keep in mind that vehicles last longer these days, depreciation is inevitable (and expensive), and you can purchase a certified pre-owned model.
Read about other Common Car Questions like Knowing your Mechanic
