Buying New Cars Doesn’t Help You Save Money

That’s a big call but I mean it. Buying a new car is the single stupidest thing I have done twice now. Each time I enjoy the fact I am getting a brand new car that is mine, only to find my hard earned money quickly disappear come time for resale.

The moment you buy a new car – the value of that car drops. That means you could have literally sat in a $40K car just once and as a result, it is now worth $38K – a loss of $2000 as quick as Hugh Jackman on a flying fox.

 

Why do people buy new cars?

They think they are more reliable. They think that they will last longer. Well sadly, both of those reasons are nothing more than myths.

Reliability can be assured in the sale of a second hand vehicle by simply buying from a reputable dealer. Odds are the car will come with a warranty and inspections that guarantee the car to be of a high quality.

As for the car lasting longer, this is the laughing stock of the industry. The average car ownership time frame is less than 5 years, yet we all think our new pride and joy will be a forever purchase. I assure you it is not so stop thinking like that.

How can you buy a new car without paying a new car price?

Why not search the car classifieds for someone who has not taken this advice and is selling a brand new car for well below retail? I like the idea of someone else other than me doing their money on the car only to give it to me for below retail.

Alternatively you could look to buy demonstrator models – e.g. cars that have been driven around the block by the dealership when trying to make a sale. Chances are the car is in pristine condition, done only a few thousand kilometres and will come in well below the retail price. Once again, you have let someone else wear the costs.

Another tried and tested way of saving money is to look at reputable car yards by big manufactures – e.g. visit a Toyota dealership for the cars that others have traded in. The cars will be in sellable condition if they are on display and with a bit of bargaining, the price can also be lowered.