Everyday we are bombarded by advertisements from every industry that you can imagine. The auto industry is no exception and manufacturers make sure you notice. Flashy commercials combined with incredible incentives often leave us in a game of tug-of-war between want and need. When you do a little research though, you'll find that used cars will often beat out new cars when it comes to value.
Why New Cars Aren't All They're Cracked Up To Be
Depreciation. It's usually ignored until it becomes a problem. The silent thief can end up taking about 15% of your vehicles worth just in the first year that you've purchased it, and it's why you often have to pay so much when it comes to leasing a new car.
While the incentives and perks sound great at first, you really need to look at the whole picture in terms of your overall vehicle worth. Your average new car, truck or SUV cost between $20k and $30k new when it's all said and done. However within the first year your automobile will lose about $4,500 in depreciation. Here are a couple of things you should consider if you're planning on buying new.
- What is the monetary worth of the incentives and how does it compare to the depreciation lose?
- Will depreciation cause your loan to go upside-down?
Next you should know a few things about what a used vehicle can afford you. A used car does not have to be the clunker with rust spots all over the body. In fact you can find quality vehicles that are only a year or two old. Even many in house car dealers offer vehicles with lower miles and some may even have the manufacturer's warranty still intact. Some dealerships may even have special events and incentives that apply to their used car selection too.
As We See It
Here at Auto Credit Express, our main goal is to help you improve the quality of life for not only yourself but your loved ones too. We do that best by guiding you in the difficult auto industry market of today. In the end, buying a new vehicle or a used one is your choice, but the used car will be more affordable.
So if you need the assistance of a team of professionals that can guide you to the right dealers in your local area, then don't hesitate to apply today! Our quick online application will set you on the quick track to getting the car, truck or SUV that you and your family needs now.