Save a Ton of Dough on Your Next Car!

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Getting a brand new car is a great feeling. 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.

Astoundingly (to me at least) you can buy an almost new car for a much lower price. Auto dealers have a huge supply of late model used cars. It baffles me where these barely used cars come from. I recently saw a 2008 Infiniti G35 with 17,000 miles for sale at an Infiniti dealer California. There’s a 2009 Ford F-150 available for ,000 at a Ford dealer Orange County. And a 2009 Honda Civic for ,000 at a Palm Springs used car Dealership. Who purchased this new car and then got rid of it while it still has so much use? Maybe the cars were repossessed.Maybe they can afford a new car every year? Go figure?The good news is that you can purchase it for significantly less than they paid - and it’s almost a new car!

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 significant. You would still be happy if you had purchased that same car a year ago, even though the manufacturer has now released a newer model. You would almost certainly still owe more on it than it’s worth on the used car market. But most people want the latest and greatest available when they buy a car. Inside of a year, they’ll own a used car.

Why not benefit from this bias which inexplicably decreases the market price of used cars, trucks and SUVs? Identify a model you like. Most car dealers will certify vehicles that are in good condition and have a limited number of miles. Financing is still available on a used car, just like it is 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.

What Has Been Learned Since the Car Was New

Sometimes when a car comes out, there are problems that no one is aware of. Car magazines and other reviewers drive the new car models and report on their findings. But they only get to test the cars for a short period of time. Some information, like reliability just isn’t available until thousands of them are on the road over an extended period of time. When you are buying a used car, you have access to some of this information before you decide. Besides, even the best cars have recalls over the first year or two. When you buy a preowned car, many of these problems have already been fixed.

If, like everyone else, you are watching your budget, consider getting a used car that is only a couple years old. The ideal place to get a good used car is the dealership that sells those same cars new. They have a good selection, sales people who are familiar with the car, and factory trained technicians who can service your car going forward.

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