There’s nothing quite like that feeling when you get a brand new car. Everything about the car is pristine. There are no stains on the upholstery, no scratches or dings, and it even has that great new car smell. But those things don’t last very long, as we all know, and you still have to make the new car payments.
To my surprise a low mileage late model car costs a lot less. Car dealers always seem to have a ton of almost-new cars on their lots. I can’t figure out where these nearly new cars come from. I recently saw a 2008 Cadillac CTS with 7,000 miles for sale at a Chicago area Cadillac dealer. There’s a 2008 Hyundai Santa Fe available for ,000 at a Kern County Hyundai dealership. And a 2008 Nissan Sentra for ,000 at a Southern California Nissan Dealer. Who bought this brand new car and then gave it up before it was more than a couple of years old? Perhaps they weren’t able to make their car payments.Perhaps their company buys them 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
You’d think that the price of a used car would be what it was worth when it was new, adjusted for use (mileage), any damage, and depreciation because it’s no longer the newest model. That depreciation turns out to be significant. If you had bought that same car last year, you would still be happy with your purchase, even if the manufacturer has released a new model with the latest features. You would almost certainly still owe more on it than it’s worth on the used car market. Still, most people want the latest available model when they buy a car. Within a year, they’ll have a used car.
So why not reap the benefit of this perception which unduly decreases the price of used cars? Find a model you like. Most car dealerships certify cars that have low mileage and are in good condition. Financing is still available on a used car, just like it is on a new car. Most of these used cars are still under their original warranty, and the dealer usually offers extended warranties.
Hindsight is 20/20
Sometimes when a car comes out, there are problems that no one is aware of. Edmunds, Car & Driver, Consumer Reports and others test the new car models and report on their findings. But the tester have a limited amount of time to work with the cars. Some information, like reliability just isn’t available until thousands of them are on the road over an extended period of time. If you buy a used car, you’ll have some of this type of information available to help you decide which car to buy. Besides, even the best-built new cars have recalls over the first few years. When you buy a preowned car, many of these issues have already been taken care of.
So if, like the rest of us, you are watching expenses, think about buying a used car with low mileage. An auto dealership that sells new cars is a great place to buy a reliable used car of the same make. They have a good selection, sales people who are familiar with the car, and factory trained technicians who can service your car going forward.