Buying Used Car – How Old Is Too Old?
Buying a pre-owned car has plenty of advantages. And when looking at your options, you will find cars of different ages. There are vehicles that are just a couple of years old while some can be a decade older than others. But the most important difference is the lower price point if you are choosing from pre-owned electric cars for sale in san diego. And when shopping for a used car, is there a certain age to consider? Let’s go ahead and find out.
Understanding the Depreciation Of Value
One of the best benefits of buying a used vehicle is its slower depreciation in value. Take note that new cars depreciate fast. It loses 9% to 11% of its value almost immediately. And in a year or so, a new car has already lost its 20% value. Then for the next five years, it will lose 15% to 25% of its value. In used cars, the depreciation still happens but at a slower pace.
Take note that vehicle models will depreciate at different speeds. If you are going for luxury cars, know that their depreciation is at a high rate. This is because buyers will usually go for the newest model. And the reliable vehicles depreciate the slowest. Also, the vehicles that have had recalls and are very expensive to repair have the highest depreciation rates.
Car Age – The “Sweet Spot”
Now that you understand how the value of the car depreciates through the years, getting a car that is 2 to 3 years old means that you are practically getting a nearly new vehicle. The difference is that you don’t have to suffer the depreciation hit that happens to its first owner for the first few years.
A car that would have cost you a significant amount of money can now be bought at a much lesser price due to the depreciation of value. This means that more can be saved if you go for an older vehicle. For example, a 5-year-old used car will already have lost its 60% value. Also, this implies that you will be saving even more for a much older car.
So, How Old is Too Old?
When buying a used vehicle, you have to consider that the older ones may require more maintenance and repair. You may get them at a great bargain and they may be cheaper than the newer models, but also think about the expenses that you have to take care of in the future. That is why you always have to take into consideration the maintenance costs when it comes to used cars.
The best age for purchase will all come down to your priorities. Buying a car that is just two to three years old will offer you massive savings on a new car. This usually look and drive ‘like new.’ But if you want to go a little bit lower on the price tag, you must be prepared to sacrifice on stylings and features. But remember that there are others who purposely go for the older ones for a more dramatic look.