Almost everyone has been affected by our struggling economy to some degree, causing many people to rethink their old habits and evaluate how they can save even more money.
Whether you are a struggling student, need a second car or just need a reliable vehicle, one of the many used car deals available may be to your advantage. Perhaps you have always been in the habit of buying or leasing a new vehicle. You think that nothing beats the look and smell of a brand new vehicle but realistically, there are other options available. Taking advantage of one of the many used car deals can put you on the road today and leave money in your pocket. The consumer need look no further than their computer. On-line advertising helps prospective buyers connect with vendors. In addition, auto dealers frequently peruse these sites to connect with customers and make them aware of their inventory.
In recent years, the automotive industry has been hard hit with hints of a recession. Prices have dropped dramatically with many incentives offered to persuade the consumer to buy a new vehicle. With interest rates at a historic low and huge inventories to choose from, many people have traded in their existing vehicle for a new one, leading to an abundance of used car deals. In addition, many consumers demand the latest model with the newest available features, trading in their old car when it still has miles of life left in it. Cars today can easily clock hundreds of thousands of kilometres during their lifetime. Lease buy backs often have low mileage and frequently have some of the warranty available. These may be newer models that may save you a considerable amount of money. Today it is easy to obtain a comprehensive report about the history of your vehicle, allaying any worries or concerns that you may have.
There are things that get better with age and even improve in value. Unlike a fine wine, cars are generally exempt from this phenomenon as depreciation reduces the return on your investment. Economically speaking, buying a new car may not be the wisest choice when you take into account how much a car depreciates in value during that first year. Some models experience a lower rate of depreciation and cars that are in higher demand tend to depreciate at a slower rate. The condition of the car and the mileage also impact the value. Your car will experience the steepest loss in the first year of ownership, typically an amount in the thousands of dollars as your vehicle immediately reverts to the wholesale manufacturers’ cost. A rule of thumb is that you can expect depreciation in the range of 15 – 20% each year, based on the current dollar value. With that figure in mind, does it really make sense to purchase a new vehicle when there are so many used car deals available?
Used car deals just make good financial sense, especially when you are trying to save money. Take a look around at the used car deals available and save money for tomorrow.