Wednesday, August 03, 2005
Car Buying - Buy Almost-New to Avoid New-Car Depreciation
Since new cars suffer high rates of depreciation in the first year, it is generally better to buy a relatively new car (at least one year old) that has already experienced its greatest loss in value.
Almost-new used cars represent the best values for automotive consumers and offer most of the benefits of new-car ownership at lower cost. Here are some of those benefits:
- Manufacturer's warranty is still in effect. Most new cars have 36 month general warranties, many have 48 months, and a few have 60 months -- all transferable to new owners.
- Manufacturer's new-car rebates and low-interest loans, which are very common, drive the price of used cars down. Almost-new used cars are currently undervalued for this reason.
- Optional equipment and packages on almost-new used cars are generally greatly undervalued, compared to original cost.
- Safety equipment is up to date, and comparable to new cars.
- Less risk of hidden problems than with an older car.
Read the full car buying article by Al Hearn.
Almost-new used cars represent the best values for automotive consumers and offer most of the benefits of new-car ownership at lower cost. Here are some of those benefits:
- Manufacturer's warranty is still in effect. Most new cars have 36 month general warranties, many have 48 months, and a few have 60 months -- all transferable to new owners.
- Manufacturer's new-car rebates and low-interest loans, which are very common, drive the price of used cars down. Almost-new used cars are currently undervalued for this reason.
- Optional equipment and packages on almost-new used cars are generally greatly undervalued, compared to original cost.
- Safety equipment is up to date, and comparable to new cars.
- Less risk of hidden problems than with an older car.
Read the full car buying article by Al Hearn.
