Buying a car is always best if you buy a new one, but well, some cars are better bought as used cars. This may not be good news to car dealers, but the truth of the matter is some big cars have fast depreciation which necessitates buying it as a used car if the buyer wants to save some money. You may have to wait for a whole year for the cost to wear down, but the saving is worth the wait.
If you’re thinking of buying a Buick Regal and upgrading in a year or two, buying new is the wrong way to go. According to the data collected by iSeeCars, a new Regal’s value dropped 31.2% after a single year of ownership. With the average price for this Buick well over $30,000, the drop amounted to $11,525 in lost value for the original buyers.
Buyers of the 2015 and 2016 Chrysler 300 lost an average of 31.7% when they went to sell after just 12 months of ownership. In a cruiser that consumers often load up with options and tech, that hit amounted to some $11,525 per car. As for reasons why 300 buyers would want to sell so soon, iSeeCars CEO Phong Ly cited the Chrysler brand’s notoriety for poor dependability as one key issue.
The Jaguar XF might not be the first car you think of when you think of the exalted luxury brand, and maybe that’s why buyers are looking to sell after one year. When they sold 2015 or 2016 XF models, they saw a 32.3% drop in value on the used market, iSeeCars data showed. That’s a pretty penny ($19,966) to lose after enjoying your Jag for a fleeting 12 months. Used car buyers would be much happier with the purchase.
You may not be as impressed with buying a used car as you would with a new one. But if you don’t have the extra amount it will cost you to go for the new ride, you need not to worry over having to go for the second option. Used cars have their own advantages too.
Sign the paperwork for a brand-new car, drive it off the lot, take a ride around town, and then return the car to the dealership. It isn’t a new car anymore. It is a used car. And because it is a used car, it is worth substantially less than you paid for it just an hour prior. After three years, Consumer Reports says your new car will be worth just 54 percent of what you paid for it, on average.
Today’s cars, trucks, SUVs and vans simply last longer. By the middle of the summer of 2015, according to IHS Automotive, the average car driving on American roads had reached a record high of 11.5 years of age. The auto industry think tank also predicts that by 2020, the number of 12-year-old vehicles still in operation will rise by 15 percent.
Most leases are written for 3-year terms, and include restrictions related to mileage, vehicle maintenance, and condition. Due to these restrictions, people must take good care of the vehicle or face expensive fines at the end of the lease. When the lease term is up, the car is returned, and the returned vehicle must find a home. Typically, that car’s new home is the dealership’s certified pre-owned (CPO) lot.
You may not want to buy a used car, and the value depreciation in the new one can be too overwhelming to bear. This is where many people take a turn and opt on leasing a car instead of going for the other options. However, leasing doesn’t guarantee heaven; it also has its drawbacks.
One issue you may encounter as you search for a good new or used car is that certified pre-owned vehicles tend to be a little more expensive than traditional used cars. There are a few reasons for this, but the primary one is that automakers need to charge a little more for a certified pre-owned car in order to make it financially viable to offer a warranty.
Warranty Already Included?
Something else you should consider before you sign the papers on a certified pre-owned car is whether the vehicle has any manufacturer warranty left. If it does, and if you don’t plan to keep the car very long, it may not be worth spending the extra money for a certified pre-owned vehicle.
Since certified pre-owned vehicles can be sold only by authorized dealerships from the same brand as the vehicle, you might find that certified pre-owned vehicle selection can be a little thin. For example, if you have only one Ford dealership near you, you’ll be at that dealer’s mercy when it comes to certified pre-owned selection unless you want to drive a long distance to another dealership. Buying a traditional used car, meanwhile, opens up a wider selection and a greater range of possibilities.